Sika continued its very positive growth trend also in the third
quarter of 2007. All regions improved in sales and profit, with North
America showing the lowest rate of growth.
Sales growth
Sales in the first nine months increased in comparison with the same
period of the previous year by 18.3% from CHF 2 889 million to CHF 3
416 million. Acquisitions in the Construction Division (+1.7%)
contributed to this growth and those in the Industry Division (+
0.2%) also to a smaller extent. Furthermore, the growth rate contains
a currency effect of 2.8%, so that Sika achieved organic growth of
13.6%.
Profit development
Costs for raw materials used rose (+18.4%) in proportion to sales.
Due to virtually unchanged inventory of intermediate goods in
comparison with the previous year, the gross margin fell by 0.9
percentage points to 53.5%. Other expenses (+16.8%) and personnel
expenses (+9.7%) grew by contrast at disproportionately lower rates,
resulting in an improved EBITDA margin of 15.0% which grew by 0.9
percentage points. On an absolute basis, operating profit before
depreciation and amortization rose by 25.2% from CHF 408.5 million to
CHF 511.5 million.
Depreciation and amortization in the first nine months were on a
level similar to 2006, while no impairments were written down.
Operating profit rose by 39.6% from CHF 298.3 million to CHF 416.3
million.
The financial income and financial expenses were nearly unchanged in
comparison with the previous year, and the rate of income tax of
29.9% lay 1.5 percentage points below that of the previous year.
Consolidated net profit increased significantly by 47.7% from CHF
186.5 million to CHF 275.5 million.
Regions
All Regions contributed to Group growth during the reporting period.
The Region India, Middle East and Africa (IMEA), shown separately
since the beginning of this year, achieved with 35.1% the highest
growth rate, followed by Latin America with 24.1%. Sales in North
America grew by 6.9%, a comparatively lower rate, due on one hand to
a negative currency effect of -3.0%, and on the other to strategic
adjustments of the Industry Division in the automotive sector in the
USA, whereby focus has been successfully placed on new business and
profitability while unattractive business has been relinquished.
Since in this Region the Industry Division in comparison with the
Construction Division is considerably larger, contrary to elsewhere
in Sika, this influence on the consolidated result is correspondingly
large.
Divisions
Net sales in the Construction Division in the reporting period of CHF
2 681 million lay 19.2% above the previous year result of CHF 2 249
million. This includes a positive currency effect of 2.9% and a
positive effect from acquisitions (+3.7%) and from divestments
(-1.5%), resulting in organic growth achievement of 14.1%.
The Industry Division raised net sales by 14.8% from CHF 640 million
to CHF 735 million. Here as well, a positive currency effect of 2.5%
and a positive effect from acquisitions of 0.7% contributed to the
result. Organic growth thus amounted to 11.6%.
Outlook for 2007
Since due to its business structure Sika is effected only to a small
extent by the current real estate crisis in the USA and weakening
construction in the Private Home sector in Germany, the company
estimates overall for the year 2007 in comparison with the previous
year with an organic growth increase well above 10% and
disproportionately higher profit growth.
-END-
Sika AG
Zugerstrasse 50
CH-6341 Baar, Switzerland
www.sika.com
Contact: Rainer Weihofen,
Corporate Communications & Investor Relations
Tel.: +41 41 768 68 00
Fax: +41 41 768 68 50
weihofen.rainer@ch.sika.com
Sika AG - a corporate profile
Sika AG, located in Baar, Switzerland, is a globally active company
supplying the specialty chemicals markets. It is a leader in
processing materials used in sealing, bonding, damping, reinforcing
and protecting load-bearing structures in construction (buildings and
infrastructure construction) and in industry (vehicle, building
component and equipment production).
Sika's product lines feature high-quality concrete admixtures,
specialty mortars, sealants and adhesives, damping and reinforcing
materials, structural strengthening systems, industrial flooring and
membranes. Subsidiaries in more than 70 countries worldwide and
approximately 11,000 employees link customers directly to Sika and
guarantee the success of all of its business relationships. With
this business structure Sika generates annual sales of CHF 4 billion.
Visit our website at www.sika.com.
The media release and the report can be downloaded from the following
links:
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Sika AG
Zugerstrasse 50 Baar
WKN: 858573; ISIN: CH0000587979;
Index: SMCI, SPI, SPIEX, SMIEXP, SMIM;
Listed: Main Market in SWX Swiss Exchange;
