Press Release: Sika: 2018 SALES EXCEED CHF 7 BILLION FOR THE FIRST TIME - STRONG GROWTH OF 13.7%

Sika AG / 2018 SALES EXCEED CHF 7 BILLION FOR THE FIRST TIME - STRONG

GROWTH OF 13.7%. Processed and transmitted by West Corporation. The

issuer is solely responsible for the content of this announcement.

-- Sales growth of 13.7% in local currencies to CHF 7.09 billion in 2018

-- Strong growth in all regions

-- Continued investment in supply chain expansion with opening of 11

factories, 1 national subsidiary, and 4 acquisitions

-- Outlook 2019: in line with the strategic targets, sales growth of 6-8%

and over-proportional profit increase are expected

Sika proved its ability to generate very strong growth in 2018,

increasing sales in local currencies by 13.7% to the equivalent of CHF

7.09 billion. The positive development of business in all regions,

together with continued investments in new factories, the establishment

of another national subsidiary, and the strategic focus on big cities to

capture the business potential of the megatrend urbanization contributed

to Sika's strong growth.

Over the last year, Sika succeeded in increasing sales by 13.7% in local

currencies to a total of CHF 7.09 billion, thereby exceeding the CHF 7

billion mark for the first time. All regions managed to boost sales and

gain further market share. Above-average growth rates were achieved in

Eastern Europe, Africa, the Middle East, USA, Indonesia, India, China,

and in the Global Business segment.

Paul Schuler, CEO: "We made further significant progress with our growth

strategy in fiscal year 2018 and have made good use of the additional

momentum afforded to us by the settlement of the takeover dispute. Our

13.7% increase in sales meant we broke through the CHF 7 billion barrier

for the first time. With 11 new factories, an additional national

subsidiary and four acquisitions, we have invested a great deal in our

supply chain in the past year so that we can benefit from the growth in

global construction markets and further expand our market position. We

owe this record result to the great efforts of the 19,500 people who

work for Sika worldwide - and for that I would like to thank them."

GROWTH IN ALL REGIONS

In 2018, sales in the EMEA region (Europe, Middle East, Africa)

increased by 14.2% in local currencies (previous year: 7.6%). The core

markets of Spain and the UK recorded high single-digit growth.

Double-digit growth rates were achieved in the Middle East, Africa, and

Eastern Europe.

With the acquisition of Index Construction Systems and Products in Italy,

Sika gained a leading manufacturer of waterproofing systems for roofs

and building structures. In the reporting period Sika also acquired

Polypag, a Swiss-based manufacturer and developer of polyurethane foam

systems, as well as Arcon Membrane, a major manufacturer of roofing and

waterproofing systems in Romania. New factories for concrete admixtures

and mortar products were commissioned in Senegal, Saudi Arabia, Dubai,

Azerbaijan, Kazachstan, and Russia.

The newly established Americas region recorded local currency growth of

11.7% in 2018 (previous year: 12.6%). Including acquisitions, USA

managed to record double-digit growth thanks to investments and market

initiatives in metropolitan areas. The development of business in Brazil

and Colombia was above-average. The basis for further growth in Central

America was laid with the establishment of a new national subsidiary in

Honduras. With the acquisition of the global Concrete Fibers business

from Propex Holding, LLC, Sika has further invested in the high growth

market for concrete fibers. New production plants for concrete

admixtures and mortars were opened in Peru and Guatemala.

Growth in the Asia/Pacific region amounted to 5.5% in local currencies

(previous year: 5.4%). Here the highest growth rates were recorded by

India, Indonesia, and China. In Vietnam, a state-of-the-art facility for

mortar production has come on stream in the Bac Ninh plant alongside the

existing production of concrete admixtures. This has enabled Sika to

expand its supply chain in this large construction market.

The new Global Business segment recorded a growth rate of 29.2% in local

currencies (previous year: 11.5%), of which 23.0% is attributable to the

acquisition of Faist ChemTec. This new segment includes the globally

managed businesses automotive, Advanced Resins (formerly Axson

Technologies), and Faist ChemTec. Advanced Resins and Faist ChemTec are

established providers of components and solutions for automotive and

other industries. A new automotive factory for the production of

acoustic and body reinforcement systems was opened in Querétaro, in

order to derive even greater benefit from the strong Mexican automotive

market.

OUTLOOK

For the business year 2018, a record operating profit (EBIT) in the

range of CHF 940 million to 960 million is expected. With investments in

eleven new factories, one additional national subsidiary, and four

acquisitions, the basis for continued growth has been established. These

16 key investments, together with the well-filled pipeline of new

products and the strong sales organization, allow Sika to look to the

future with much confidence.

In the business year 2019, Sika expects a sales increase in line with

its Growth Strategy 2020 targets of 6 to 8% and an over-proportional

rise in profits. Depending on the closing date of the Parex transaction,

sales are expected to exceed CHF 8 billion. The execution of the Growth

Strategy will continue in 2019 with the opening of new factories and

further acquisitions. The new Strategy 2023 will be communicated at the

Capital Markets Day on October 3, 2019.

FINANCIAL CALENDAR:

Media conference / analyst presentation Friday, February 22, 2019

on full-year results 2018

Net sales first quarter 2019 Tuesday, April 9, 2019

51(st) Annual General Meeting Tuesday, April 9, 2019

Half-year report 2019 Thursday, July 25, 2019

Results first nine months 2019 Thursday, October 24, 2019

Net sales 2019 Tuesday, January 7, 2020

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

slappnig.dominik@ch.sika.com

SIKA CORPORATE PROFILE

Sika is a specialty chemicals company with a leading position in the

development and production of systems and products for bonding, sealing,

damping, reinforcing and protecting in the building sector and motor

vehicle industry. Sika has subsidiaries in 101 countries around the

world and manufactures in over 200 factories. Its more than 19,500

employees generated annual sales of CHF 7.09 billion in 2018.

The media release can be downloaded from the following link:

Media Release: http://hugin.info/100359/R/2230721/876671.pdf

This announcement is distributed by West Corporation on behalf of West

Corporation clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Sika AG via Globenewswire

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Sika AG

Zugerstrasse 50 Baar Switzerland

WKN: 858573;ISIN: CH0000587979;

http://www.sika.com

(END) Dow Jones Newswires

January 07, 2019 23:15 ET (04:15 GMT)