Sika AG: Still growing strong
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Sika AG: Still growing strong
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Sika increased sales by 17.2% in local currencies in the first nine months of
the year. The company witnessed double-digit growth in all regions apart from
Europe South. The result for the third quarter was also pressured by continually
rising raw material prices and currency effects.
Sales
In the first nine months of the current business year, Sika increased sales by
17.2% in local currencies, including an acquisition effect of 3.9%. Translated
into CHF, sales were up by 3.2% year-on-year from CHF 3 318.6 million to CHF 3
424.8 million.
Regions
Sika posted gains in local currencies in all regions. As was the case in the
first half of the year, Sika could rely on sustained strong demand from the
emerging markets. In North America too, Sika gained further share in a fiercely
contested market. While Europe North saw double-digit growth, Europe South was
able to maintain single-digit growth thanks to the French and UK markets. Broken
down by regions, Sika reported the following local currency sales growth for the
first nine months: Asia/Pacific 37.0%, North America: 25.1%, Latin America
22.6%, IMEA (India, Middle East and Africa) 13.1%, Europe North 11.8% and Europe
South 4.2%.
Earnings
At end-September 2011 the gross margin stood at 50.8% (end-September
2010: 54.7%), due primarily to higher raw material prices. The substantial price
rises faced in the first and second quarters will feed through to margins in the
third and fourth quarters with a time lag. Likewise, the sales price increases
subsequently implemented will not have an impact until after a certain delay and
so failed to offset continually rising material costs.
Despite the expansion drive underway in the emerging markets, Sika saw a 0.8
percentage point improvement in cost efficiency (costs expressed as a percentage
of net sales) from 40.5% to 39.7%. Operating profit (EBIT) after nine months
came to CHF 281.3 million (previous year: CHF 368.7 million), corresponding to a
margin of 8.2% (previous year: 11.1%). Consolidated net profit amounted to CHF
169.3 million (previous year: CHF 249.2 million).
Outlook
Apart from country-specific exceptions (North Africa), the outlook in the
emerging markets remains positive. In Europe, on the other hand, the situation
is somewhat uncertain. While key operating figures do not reveal any noticeable
levelling off of business, the financial and political backdrop makes it
difficult to gauge developments going forward.
Since increases in material prices only impact on the income statement after a
delay of 3 to 6 months, the gross result will remain under pressure.
Accordingly, efforts to lift sales prices will continue.
Even factoring in further efficiency increases on the cost side, net profit for
full year 2011 will be well below the figure for 2010.
Income Statement
% 1/1/2010 - % 1/1/2011 - Change
in CHF mn 9/30/2010 9/30/2011 in %
Net sales 100.0 3 318.6 100.0 3 424.8 3.2
Other operating income 0.1 4.2 0.1 3.8
Changes in inventory 0.0 0.0 0.0 0.0
Operating revenue 100.1 3 322.8 100.1 3 428.6 3.2
Material expenses -45.4 -1 506.3 -49.3 -1 688.3
Gross result 54.7 1 816.5 50.8 1 740.3 -4.2
Personnel expenses -21.5 -711.9 -20.8 -713.9
Other operating expenses -19.0 -634.3 -18.9 -650.4
Operating profit before depre-
iation and restructuring 14.2 470.3 11.0 376.0 -20.1
Depreciation -2.3 -76.9 -2.1 -72.4
Amortization -0.8 -24.7 -0.8 -22.3
Operating profit (EBIT) 11.1 368.7 8.2 281.3 -23.7
Interest income 0.1 2.5 0.2 5.8
Interest expenses -0.8 -23.5 -0.8 -25.4
Other financial income 0.1 4.0 0.0 0.5
Other financial expenses -0.3 -9.8 -0.6 -20.2
Income from participations 0.1 3.9 0.2 8.0
Net profit before taxes 10.4 345.8 7.3 250.0 -27.7
Income taxes -2.9 -96.6 -2.4 -80.7
Net profit 7.5 249.2 4.9 169.3 -32.1
Profit attributable to Sika
shareholders 7.5 248.9 4.9 168.6
Profit attributable to minority
interests 0.0 0.3 0.0 0.7
Net Sales in the First Nine Months
1/1/2010 - 1/1/2011 - Change compared to prior year
in CHF mn 9/30/2010 9/30/2011 (+/- in %)
In Swiss In local Currency
francs currencies[2] impact
By region
Europe North 1 003.5 1 018.8 1.5 11.8 -10.3
Europe South 680.7 623.9 -8.3 4.2 -12.5
North America 437.9 459.7 5.0 25.1 -20.1
Latin America 354.4 379.7 7.1 22.6 -15.5
IMEA[1] 216.2 199.2 -7.9 13.1 -21.0
Asia/Pacific 462.9 568.5 22.8 37.0 -14.2
Not segmented 163.0 175.0 7.4 21.1 -13.7
Consolidated net
sales 3 318.6 3 424.8 3.2 17.2 -14.0
Products for
construction
industry 2 661.8 2 778.1 4.4 18.5 -14.1
Products for
industrial
manufacturing 656.8 646.7 -1.5 12.0 -13.5
[1] India, Middle East, Africa
(IMEA)
[2] including
acquisitions
Financial Calendar
January 10, 2012: net sales 2011
March 1, 2012: full-year results 2011; media conference/analysts' presentation
April 17, 2012: shareholder letter (net sales three months), Annual General
Meeting
July 26, 2012: shareholder letter (Half-Year Report 2012)
October 31 2012: shareholder letter (nine months 2012)
Sika AG Contact: Dominik Slappnig
Zugerstrasse 50 Corporate Communications & Investor Relations
CH-6341 Baar, Switzerland Tel.: +41 58 436 68 21
www.sika.com Fax: +41 58 436 68 50
slappnig.dominik(at)ch.sika.com
Sika AG Corporate Profile
Sika AG, located in Baar, Switzerland, is a globally active specialty chemicals
company. Sika supplies the building and construction industry as well as
manufacturing industries (automotive, bus, truck, rail, alternative energies,
building components). Sika is a leader in processing materials used in sealing,
bonding, damping, reinforcing and protecting load-bearing structures. Sika's
product lines feature high-quality concrete admixtures, specialty mortars,
sealants and adhesives, damping and reinforcing materials, structural
strengthening systems, industrial flooring as well as roofing and waterproofing
systems. Worldwide local presence in 76 countries and some 14 000 employees link
customers directly to Sika and guarantee the success of all partners. Sika
generated annual sales of CHF 4.4 billion in 2010. Visit our website at
www.sika.com.
--- End of Message ---
Sika AG
Zugerstrasse 50 Baar
WKN: 858573;ISIN: CH0000587979;
Media Release:
http://hugin.info/100359/R/1559952/482486.pdf
Shareholder letter 9 months 2011:
http://hugin.info/100359/R/1559952/482487.pdf
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originality of the information contained therein.
Source: Sika AG via Thomson Reuters ONE
[HUG#1559952]
Unternehmensinformation / Kurzprofil:
Datum: 02.11.2011 - 05:00 Uhr
Sprache: Deutsch
News-ID 82807
Anzahl Zeichen: 9776
contact information:
Town:
Baar
Kategorie:
Business News
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