Growth continues on a high level

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 Contact: Rainer Weihofen, Corporate Communications & Investor Relations Tel.: +41 41 768 68 00 Fax: +41 41 768 68 50 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 The media release and the report can be downloaded from the following links: --- End of Message --- Sika AG Zugerstrasse 50 Baar WKN: 858573; ISIN: CH0000587979; Index: SMCI, SPI, SPIEX, SMIEXP, SMIM; Listed: Main Market in SWX Swiss Exchange;