Sika: Increase of Profit and Market Share
In the first half-year of 2010, sales growth of Sika AG, Baar, Switzerland, in local currency terms amounted to 6.7%. This includes an acquisition effect of 1.9%. In terms adjusted for exchange rates, Sika grew in all Regions, albeit with substantially varying rates. Thus the emerging markets achieved double-digit growth throughout, with the highest rate in Region Asia/Pacific at 23.8%. Within this Region, China excelled with a growth rate of some 40%. In Region Latin America sales rose by 15.4%, followed by IMEA (India, Middle East, Africa) with growth of 12.8%. In the traditionally industrial nations growth rates proved lower: North America 5.6%, Europe North 2.2% and Europe South 1.3%. Sika thereby continued to gain market share.
For the entire reporting period sales growth in terms adjusted for exchange rates amounted to 3.5%, including an acquisition effect of 2.2%. Sales of products for industrial manufacturing accelerated by 20.1% (0.5% due to acquisitions). Contributing to this success were both the considerable number of new vehicle models that Sika won in years 2008 and 2009 and which are now leaving manufacturers’ assembly lines, as well as the substantially boosted production figures for automobiles, busses and also commercial vehicles, in comparison with the same period in the previous year.
During the reporting period the effective material costs remained at the reduced level of the second half-year of 2009, so that as a proportion of sales gross profit improved by 0.9 percentage points. As a result of cost reduction programs, personnel costs declined as a proportion of sales from 24.4% to 22.6%. Other operating expenses developed in accordance with sales volume.
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