Press Release: Sika: SUCCESSFUL START TO THE YEAR WITH 7.1% SALES GROWTH IN FIRST QUARTER

SUCCESSFUL START TO THE YEAR WITH 7.1% SALES GROWTH IN FIRST QUARTER

-- Sales growth of 7.1% in local currencies to CHF 1,644.8 million (+5.8% in

CHF)

-- Growth in all regions

-- New mortar factory established in Senegal

-- Announced acquisition of three companies: Parex, global, King Packaged

Materials, Canada, and Belineco, Belarus

-- Confirmation of outlook with sales target of at least CHF 8 billion in

2019

Sika has continued its growth trajectory with a successful start to the

2019 business year, reporting a new sales record of CHF 1,644.8 million

in the first quarter. This equates to an increase of 7.1% in local

currencies. A negative currency effect (-1.3%) led to robust sales

growth in Swiss francs of 5.8%.

Paul Schuler, Chief Executive Officer: "In a commercially challenging

environment we have delivered sales growth of 7.1%, which represents a

strong start to the new business year. The acquisition of Parex, which

is expected to complete in the second quarter, will provide us with a

first-class growth platform. Our organization is set up for the next

level of growth, and we anticipate sales to exceed CHF 8 billion for the

first time in 2019 as a whole."

GROWTH IN ALL REGIONS

In the first quarter of 2019, sales in the EMEA region (Europe, Middle

East, Africa) increased by 8.2% (previous year: 10.2%). Business

developed well in Germany, Austria, and Switzerland (DACH area). The

countries of Eastern Europe and Africa posted double-digit growth rates.

In Africa, the new national subsidiaries in particular significantly

contributed to the strong growth.

At the start of 2019, Sika announced the acquisition of Belineco, a

polyurethane foam systems manufacturer based in Belarus. The takeover

will further improve access to the East European market. In addition,

Sika has invested in a mortar production facility in Senegal.

The Americas region recorded growth of 4.8% (previous year: 12.2%).

Numerous major construction projects have been delayed in the United

States due to the ongoing shortage of skilled labor. In Mexico, the

change in government has led to noticeable cost-cutting measures in the

area of infrastructure. Business development in Brazil and Colombia was

higher than average. In Canada, the acquisition of the King Packaged

Materials Company in the reporting period brought a leading manufacturer

of concrete repair systems into the Group.

Sales in the Asia/Pacific region rose by 2.8% (previous year: 3.9%).

Double-digit growth rates were reported in two of the largest economies

of Asia, namely China and India. By contrast, growth in the countries of

Southeast Asia and the Pacific area was uneven, and in some cases even

negative.

The Global Business segment recorded growth of 13.3% (previous year:

20.9%), 11.3% being attributed to acquisitions. In the Automotive area,

Sika was further able to increase its market share in the first quarter

and grow organically, despite the decline in car production figures

worldwide. In particular, Sika is benefiting from the megatrends evident

in modern automotive construction, which are dominated by

electromobility and lightweight construction. New platforms and

multi-material designs are opening up new avenues of growth potential

for Sika.

OUTLOOK: SALES TARGET OF CHF 8 BILLION IN 2019

Sika expects sales to increase by 6--8% in 2019, in accordance with the

Group's Strategic Targets 2020, and anticipates an over-proportional

rise in profits. With the consolidation of Parex tentatively taking

place in the second quarter, sales is set to exceed CHF 8 billion for

the first time. The implementation of the Group's growth strategy will

continue in 2019 with the opening of between seven and nine new

factories, and the establishment of further growth platforms in the form

of acquisitions. Details of the new Strategy 2023 will be presented at

the Sika Capital Markets Day on October 3, 2019.

NET SALES IN THE FIRST THREE MONTHS OF 2019

1/1/2018-

In CHF mn 3/31/2018 1/1/2019-3/31/2019 Year-on-year change (+/- in %)

---------------------------------------------

In local Currency Acquisition

in CHF currencies(1) effect effect

------ -------- -----------

By region

EMEA 691.5 723.8 4.7 8.2 -3.5 1.2

---------- ------------------ ------ -------------- -------- -----------

Americas 389.0 412.5 6.0 4.8 1.2 1.6

---------- ------------------ ------ -------------- -------- -----------

Asia/Pacific 257.7 266.2 3.3 2.8 0.5 0.0

---------- ------------------ ------ -------------- -------- -----------

Global Business 215.8 242.3 12.3 13.3 -1.0 11.3

---------- ------------------ ------ -------------- -------- -----------

Net sales consolidated 1,554.0 1,644.8 5.8 7.1 -1.3 2.5

---------- ------------------ ------ -------------- -------- -----------

Products for the

construction industry 1,170.2 1,225.8 4.8 5.9 -1.1 1.2

---------- ------------------ ------ -------------- -------- -----------

Products for

industrial manufacturing 383.8 419.0 9.2 10.8 -1.6 6.4

---------- ------------------ ------ -------------- -------- -----------

(1) including acquisitions

FINANCIAL CALENDAR

51st Annual General Meeting Tuesday, April 9, 2019

Half-Year Report 2019 Thursday, July 25, 2019

Results first nine months Thursday, October 24,

2019 2019

Net sales 2019 Tuesday, January 7, 2020

Media conference/analyst Friday, February 21,

presentation 2020

on 2019 full-year results

52nd Annual General Meeting Tuesday, April 21, 2020

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

https://www.globenewswire.com/Tracker?data=onT5j_L0W18PUJu8GNTcDsu33Y65LLdv3OOG8t1NjsocKgvsl6c4o4qA6kNJjOSqFf1RE_b8dmGqfHj45YyqUmJDVT1d8tdk3jUphSaxGsmncVVLIKdBubjtp8x5jcIP

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 20,000

employees generated annual sales of CHF 7.09 billion in 2018.

The media release can be downloaded from the following link:

Attachments

-- Media Release

https://ml-eu.globenewswire.com/Resource/Download/57646f2f-133c-4117-a53c-e1e35c330f46

(END) Dow Jones Newswires

April 08, 2019 23:00 ET (03:00 GMT)