Sika: Q1 sales a little better than expected

6

Published on 04/17/2018 at 8:00 am

Sika, the Swiss specialist in construction chemistry coveted by Saint-Gobain since 2014, published a quarterly turnover slightly higher than expected on Tuesday and said it expects earnings to grow throughout the year. / Photo taken 23 February 2018 / REUTERS / Moritz Hager
Thomson Reuters
(Reuters) – Sika, the Swiss specialist in construction chemistry coveted by Saint-Gobain since 2014, published on Tuesday a quarterly turnover slightly above expectations and said it expects earnings growth across the world. ‘year. The Zug group reported an 11.9% growth in sales to 1.55 billion Swiss francs (1.30 billion euros) for the first three months of the year, taking into account a positive exchange rate effect of 0.9 points and the consolidation of seven companies acquired last year. Analysts polled by Reuters on average forecast a turnover of 1.54 billion. In local currencies, sales rose by 11% and the group set a target of CHF 7.0 billion for the full year. Sika added a “above average” increase in operating income and net income in 2018. Saint-Gobain and the Burkard family, which controls Sika, signed the sale of the group’s control at the end of 2014 for € 2.3 billion, but the management of the Swiss chemist and several of its shareholders have since opposed it through the intermediary courts. An appeal court in the canton of Zug is expected to decide in the coming weeks on the attempt by Sika, endorsed by a lower court, to reduce to 5% the voting rights of the Burkard family. The case is closely watched by investors, who see it as an important test for respecting the rights of minority shareholders. In this case, institutional investors Columbia Threadneedle Investments, Fidelity International and the Bill & Melinda Gates Foundation came together with Sika management. The Swiss group, whose products also serve the automotive industry, argues that a rapprochement with Saint-Gobain would have little industrial logic. The board of directors also considers that the company would be penalized by being controlled by a direct competitor who would be a minority shareholder. (John Revill in Zurich and Shalini Nagarajan in Bangalore, Véronique Tison for French service)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.