In the first half of 2012, Sika increased sales by 6.4% in local currencies. In Swiss franc terms, after adjusting for exchange rate changes of -3.0%, sales increased by 3.4% year-on-year to CHF 2,307.0 million. Sika also further improved its gross result, which now stands at 53.1%.
Sika’s strong global presence and its successful growth strategy in the emerging markets are enabling the company to compensate for the current weakness in Europe and China through sustained growth in the Americas and large parts of Asia. In local currencies, Sika recorded a 6.4% increase in sales in the first half of the current business year. In Swiss franc terms, the company lifted its sales by 3.4% year-on-year to CHF 2,307.0 million.
Thanks to steady efforts in the first half of the year, Sika succeeded in passing on to the market increases in the cost of raw materials. This widened the gross result in percentage of net sales from 49.4% in the second half of 2011 to 53.1%. After factoring in additional acquisition-related costs, Sika posted an operating profit of CHF 195.5 million, corresponding to an increase of 10.1% (first half of 2011: CHF 177.6 million). As a result, the EBIT margin improved to 8.5% (first half of 2011: 8.0%). Sika increased its profit to CHF 126.1 million (first half of 2011: CHF 113.6 million), which represents an improvement of 11.0%.
In the first half of the year, Sika posted double-digit growth in both North and South America. The Region North America grew by 13.9% on the back of solid project business and buoyant renovation activities, while the Region Latin America lifted sales by 16.6% thanks to gains in market share and expansion of production capacity.
With growth of 10.1%, the Region IMEA (India, Middle East, Africa) is back in the double-digit growth range. In the Region Asia/Pacific, Sika grew by 2.1%. The lower growth is due to the negative trend in China, where halted infrastructure projects and a government-decreed slowdown led to a sharp decline in sales. Developments in the rest of the region were in line with high expectations.
