Though an uncertainty remains around the bid by French conglomerate Saint-Gobain to take over a majority interest in Sika AG, the Swiss specialty chemical company reports it has achieved “the best result in the company’s history” for full-year 2014, according to its financial report.
“Sales reached record levels in all regions and all relevant growth targets for 2014 were exceeded,” the company reports.
The company increased sales by 13 percent to $5.87 billion USD (5.57 billion CHF). Its North American division recorded a 7.9 percent increase in sales. Two new production facilities were commissioned in Atlanta and Denver during 2014.
“Lightweight construction and multi-material design are the megatrends in the automotive industry,” according to the company’s conference call presentation. “Adhesive bonding is becoming the supreme joining technology and a key role is played by SikaPower. Every year SikaPower adhesives make 20 million cars safer and more stable.”
Sika’s EBIT and net profit reached new levels, the company reports. The operating profit was 21 percent higher at $667.35 million USD (633.2 million CHF) over 2013. The EBIT margin was 11.4 percent. Sika’s consolidated net profit increased by 28 percent to $465.15 million USD (441.2 million CHF) over last year.
“Sales growth is expected to be 6 to 8 percent at constant exchange rates, and margins are expected to be on the level of 2014. An uncertainty represents the unknown outcome of the hostile takeover attempt by Saint-Gobain,” according to the company’s statement.
Going forward, Sika plans to open seven to nine new factories throughout the world.
“Our record year in 2014 is the result of our strategic continuity and the expertise and commitment of our 16,895 employees,” says Jan Jenisch, CEO. “Their energy, ideas and active embodiment of the Sika spirit have taken Sika to the next level of performance. On behalf of group management, I wish to thank them all for their hard work and loyalty over the past year.”
To view the company’s conference call presentation, click here.