Sika AG Reports Record Sales
Sika AG on January 10 reported a 5.6 percent increase in sales, equivalent to 5.75 billion Swiss francs ($5.67 billion USD).
Additionally, investments in new factories and national subsidiaries, as well as market launches of new products, contributed to the growth of 4.7 percent.
A record profit is expected for business year 2016, according to Sika AG.
Due to the strong figures from the previous year and shifts in demand, growth in the markets during the fourth quarter of 2016 fell just short of expectations.
Strong above-average growth rates were recorded in the United States, Mexico, the United Kingdom, Africa, Southeast Asia and Australia, as well as in the automotive business area.
“We … expect record figures for operating profit and net profit,” said Jan Jenisch, Sika AG CEO. “With investments in nine new factories, four additional national subsidiaries and four acquisitions, we have established the basis for future growth.”
Sales in North America rose by 7.8 percent in local currency, according to the company. The main growth drivers were the accelerated expansion of the supply chain and the investments in the sales force in fast-growing metropolitan areas.
The Asia/Pacific region recorded growth of 3.6 percent.