Sika – steadfast and profitable

 

During the first 9 months of the fiscal year 2002 the Sika Group recorded net sales of CHF 1 613 m (previous year CHF 1 603 m), of which CHF 17 m was attributable to acquisitions. Net sales in local currencies increased by +7.5% (Construction Division +8.1%, Industry Division +6.0%), illustrating stable internal growth in spite of the adverse economic conditions. During the period reported, negative currency effects reduced net sales by  –6.9% or CHF –111 m. However, sales volumes increased by +9.2% (+5.6% adjusted for acquisitions).

 

As customary for the third quarter, net sales were particularly strong slightly increasing to CHF 579 m (CHF 565 m). This corresponds to an increase of +2.5% in Swiss francs, or +10.8% in local currency terms.

 

 

 

The measures introduced last year to improve efficiency are showing the desired effect:

 

         Operating results before depreciation (EBITDA) increased by +12.1% in the first nine months to CHF 222.7 m (CHF 198.7 m). Operating profit (EBIT) also rose by +21.8% to reach CHF 140.3 m (CHF 115.2 m).

 

         Group net profit reached CHF 73.4 m (CHF 52.2 m), corresponding to a +40.6% increase relative to the same period of the previous year.

 

         Cash flow (net profit plus depreciation), increased by +14.8% to CHF 155.8 m
(CHF 135.7 m).

 

 

 

Based on the performance of the business during the first nine months of the fiscal year 2002, we expect to be in line with our forecast. We are not expecting the pace of growth to pick up any further before the end of the year. The fourth quarter is traditionally weak. Sales and earnings contribution during this period tends to be below-average.

 

 

 

Sika AG, based in Baar, Switzerland, is a leading global supplier of specialty chemicals. Sika offers process materials for sealing, bonding, damping, reinforcing and protecting of load-bearing structures in construction (buildings and infrastructure) and in industry (transportation, automotive, marine and appliances & equipment). Sika’s product line includes concrete admixtures, speciality mortars, sealants, adhesives, speciality acoustic and reinforcing materials, structural strengthening systems, industrial flooring and membranes. Locally based operations in more than 60 countries with over 8 000 employees connect customers directly with Sika and guarantee for the success of all our partners. With this concept Sika achieves an annual sales of approximately CHF 2.1 billion.

Visit the Sika website at www.sika.com.