SIKA : Currencies influence growth
04/08/2008| 11:01pm US/Eastern
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In the first quarter of business year 2008 Sika increased sales in
comparison with the same period in the previous year from CHF 987
million by 3.2% to CHF 1018 million. Underlying organic growth
amounted to 7.5%. Acquisitions contributed 0.2% to sales growth.
Exchange rate differences, primarily in the US dollar and Euro, bore
a negative effect of -4.5%.
While Sika achieved solid, double-digit sales growth in the months of
January and February, various factors resulted in a weakening of net
sales in March. Currency developments with a negative effect for Sika
accelerated considerably, not only in the dollar and Euro regions,
but also in a number of countries in Asia and Latin America. In
addition, the early Easter holiday led in various European countries
to interruptions in construction that otherwise would normally have
been registered in the second quarter of the business year. In
contrast with the same month in the previous year, weather conditions
for construction in Europe were disadvantageous.
Divisions and Regions
Organic growth in the Construction Division in the first quarter
amounted to 8.6%. The Industry Division achieved organic growth of
4.2%. Additionally to the already mentioned factors the reasons for
the comparatively restrained growth in the Industry Division during
the first quarter lie on one hand in not yet satisfactory automotive
business in the USA and in a temporary production stop at an
important customer in Europe.
From a geographic standpoint the Regions IMEA (India, Middle East,
Africa), with 25.8%, and Latin America with 16.1% once more attained
the highest rates of growth. In Eastern Europe the previous year's
dynamism continued unabated.
Sika is convinced also in business year 2008 of achieving its target
for organic growth of eight to ten percent and of increasing its
result again with slightly disproportional gain.
CH-6341 Baar, Switzerland
Contact: Rainer Weihofen,
Corporate Communications & Investor Relations
Tel.: +41 58 436 68 00
Fax: +41 58 436 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
Subsidiaries in more than 70 countries worldwide and approximately
11,700 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 4.6 billion. Visit our
website at www.sika.com.
The media release can be downloaded from the following link:
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WKN: 858573; ISIN: CH0000587979;
Index: SMCI, SPI, SPIEX, SMIEXP, SMIM;
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