Sika: Gaining Market Share
In the first nine months of the business year Sika expanded its market share and reduced operating costs. In addition the company benefited from lower raw material prices in comparison with those of the previous year period. The decline in sales in local currencies slowed to 5.2% (half-year -6.3%). Sales decreased by 11.6% in Swiss francs to CHF 3 132.6 million. The operating profit of CHF 321.8 million before restructuring costs lay 18% (half-year -40.8%) below that of the previous year.
Sika experienced further growth in local currencies in the Regions IMEA (India, Middle East, Africa, +9.9%) and Latin America (+8.2%). In other Regions sales declined. In Asia/Pacific sales development varied widely from country to country. While Sika achieved double-digit growth rates in emerging countries such as China and Indonesia, sales decreased in OECD nations (Japan, Australia, New Zealand).
Sika benefited during this reporting period from significantly lower raw material prices in comparison with the previous year period. Gross profit in relation to net sales improved by 2.1 percentage points to 55.1%. Operating costs before restructuring declined all in all by 6.3% (adjusted for acquisitions by more than 9%).
In its target markets Sika will continue to exploit existing market opportunities intensively and pursue its cost reduction efforts further. Therefore additional restructuring costs are anticipated in the fourth quarter.
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