Sika: Growth and Increase in Profit
On the back of a strong global presence, acquisition activities and the successful growth strategy in place in the emerging markets, Sika AG, Baar, Switzerland, increased net sales by 6.0% to CHF 3,630.1 million (previous year: CHF 3,424.8 million), thus successfully countering the impact of the weak European and Chinese markets.
Double-digit increases were recorded in both North America, up 11.1% in local currencies to CHF 540.0 million, and Latin America, which posted broad-based growth of 16.4% in local currencies to CHF 434.7 million. Sika saw stronger growth in the Region Asia/Pacific, up 3.4% in local currencies to CHF 626.6 million. Whereas the Chinese construction industry is currently in a weaker phase, the markets in Southeast Asia turned in very positive performances.
The economic climate in Europe remains difficult. While countries such as Russia, Romania and Norway witnessed growth in Europe North, the situation for the majority of countries in Europe South has not yet taken a turn for the better. Europe North reported decreasing growth of -3.1% in local currencies to CHF 956.4 million for the first nine months; Europe South saw growth of 1.5% in local currencies to CHF 614.4 million. Adjusting for the positive acquisition effect gives decreasing growth of -7.5%.
Sika was able to pass on raw material price increases to the market in the period under review and to expand the gross result to 52.6% (previous year: 50.8%). Operating profit (EBIT) improved by 21.2% to CHF 340.9 million (previous year: CHF 281.3 million). The EBIT margin now stands at 9.4% (previous year: 8.2%). Sika improved net profit after taxes by an above-average 32.3% to CHF 223.9 million (previous year: CHF 169.3 million).
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