Performance by Divisions Expressed in Swiss francs, Construction Division net sales climbed 46.2%, from CHF 422 mil. in the first quarter of 2005 to CHF 617 mil. in the corresponding period this year. Of this gain, CHF 106 mil. (+25.1 percentage points) is due to organic growth, and CHF 89 mil. (+21.1 percentage points) to acquisitions. While all Construction Division markets contributed to the upturn, it was especially spurred by sales to distributors, manufacturers of ready-mix concrete and precast concrete elements. The cooperative Sika Sarnafil process is moving ahead according to plan.
Industry Division sales rose from CHF 176 mil. to CHF 212 mil. or 20.5%. Like Construction, the Industry Division achieved two-digit growth rates in all markets. Gains were most pronounced in the fenestration market.
Our Sikaflex® and Sika® ViscoCrete® product groups are foremost pillars of our business expansion.
Regions Two-digit growth prevailed in all regions.
Expressed in Swiss francs, North America led with an advance of up 90.7% of which the Sarnafil acquisition accounts for +48.0 percentage points.
Sales in Latin America were up 51.1%. At about 20% the positive currency effects in Latin America as well as North America were significant.
In the Europe North and Europe South regions, sales, denominated in Swiss francs, increased by 28.2% and 30.7% respectively. In Europe North acquisitions contributed 12.7 percentage points to the expansion and 10.4 percentage points in Europe South.
The Asia Pacific region achieved 28.2% higher sales of which 9.0 percentage points were provided by the Sarnafil and Fosroc New Zealand acquisitions.
Outlook Sika is benefiting from invigorated markets. Should this dynamic persist, this year's sales growth, exclusive of the Sarnafil acquisition effect, is likely to exceed 10%. Sika net sales will surpass the CHF 3.5 billion level in 2006. Raw material prices are increasing again. Sika will attempt to pass the higher costs to customers, although this will only be possible with a certain time lag. In 2006 we anticipate a slightly disproportional gain in EBIT and consolidated net profit. The launch of 2006 may be described as a success; it prompts our optimism. Yet before year-end, there will be uncertainties respecting raw material prices to face and to be managed.
Sika AG Zugerstrasse 50 CH-6341 Baar, Switzerland www.sika.com
Contact: Alfred Spieser, Corporate Communications & Investor Relations Tel.: +41 41 768 68 00 Fax: +41 41 768 68 50 firstname.lastname@example.org
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