Growth and efficiencies power rise in margins
Sika Group net sales in 2006 rose against the preceding year by 33.6% from CHF 2 916.5 mil. to 3 896.1 mil. As in previous year, currency effects contributed 1.8 percentage points to results. Denominated in Swiss francs, growth adjusted for acquisitions amounted to 16.9%. The acquisition effects - particularly on account of Sarnafil - benefited the Construction Division exclusively. As in 2005 organic growth was broadly supported geographically and by both the Construction and the Industry Division.
Operating profit before depreciation (EBITDA) was up 46.1% from CHF 352.2 mil. to CHF 514.6 mil. EBIT increased from CHF 244.7 mil. to CHF 371.2 mil, a 51.7% advance.
At CHF 234.5 mil. (prior year: CHF 154.9 mil.) consolidated net profit was 51.4% higher than in the preceding year.
The operating free cash flow rose markedly from CHF 128.7 mil. to CHF 190.5 mil., mostly on account of the increase in operating profits. ROE rose to 18.4%.
The Board of Directors will propose to the Annual General Meeting on April 17, 2007 the payout of a CHF 31.20 (CHF 19.20) dividend, gross, per bearer share or CHF 5.20 (CHF 3.20) per registered share, representing roughly 34% of consolidated net profit.
See following page for compilation of key data.
2005 2006 Growth Key data on Group financial statements (in CHF mil.)
Net sales 2 916.5 3 896.1 33.6% Growth of net sales in local 31.8% currencies
Operating profit before 352.2 514.6 46.1% depreciation (EBITDA) Operating profit (EBIT) 244.7 371.2 51.7% Consolidated net profit 154.9 234.5 51.4%
Cash flow from operating 231.0 316.4 37.0% activities Operating free cash flow 128.7 190.5 48.0%
RONOA 18.1 17.3 ROE 14.1 18.4
Number of employees 9 702 11 309
The Annual Report and the presentations held at the media conference covering business in 2006 may be retrieved at www.sika.com. (Annual Report: http://www.sika.com/investors/invest-info-annual-report.htm Presentations: http://www.sika.com/investors/gen-invest-speeches.htm).
Sika AG Zugerstrasse 50 CH-6341 Baar, Switzerland www.sika.com
Contact: Christin Kukan, Corporate Communications & Investor Relations Tel.: +41 41 768 68 00 Fax: +41 41 768 68 50 email@example.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 can be downloaded from the following link:
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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;