Sika: Results in Q3
In the first nine months of the current business year, Sika AG, Baar, Switzerland, 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.
The company posted gains in local currencies in all regions. 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 %.
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, the company 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).
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