Sika's turnover soars to new heights

It seems Sika can do no wrong. For years, this golden goose of a firm, which manufactures speciality chemicals for the construction and automotive industry, has repeatedly broken its own records when it comes to turnover, profits and share prices. 2016 was no different; over the course of last year the company’s turnover soared to CHF 5.75 billion, an increase of 4.7% over the previous year, and operating profit, prior to interest and tax, rose to CHF 795.3 million, up by 18% on 2015.
 
Not surprisingly, Sika’s CEO, Jan Jenisch, was delighted with the results, with all areas where the company operates reporting increases in turnover and extension of growth. What were particularly encouraging were the company’s results in north America, where turnover was up by 10% to CHF 922.6 million. Success here was due in part to the strong dollar, the robust US economy and three acquisitions. Sika has, in fact, been involved in a number of high profile projects, including the Apple headquarters in California.
 
With order books full, Jenisch was also able to look forward with confidence to further lucrative prospects in America over the next three years, especially if President Trump goes ahead with a $130 billion project to improve and expand the American road network and other infrastructure. Indeed, in replying to a question by a journalist about the wall to keep illegal immigrants from Mexico reaching the United States, Jenisch said, “If it goes ahead, we will be involved.”
 
The CEO mentioned that shareholders would also be able to benefit from the firm’s success, a 31% increase in divided to be proposed at the AGM. With the company having reached its targets two years earlier than expected, now it is looking to achieve another record-breaking turnover of over CHF 2.2 billion by 2020.
As to 2017, Sika, which is headquartered in Baar, will be opening eight more factories and setting up three more national affiliates.
 
As to the ongoing hostile takeover planned by the Saint Gobain Group of France, Jenisch was confident this had virtually been thwarted. “We have had a court ruling, I cannot see what else St Gobain can do to change anything,” he said. No further news on this is expected before the summer.
 
The second photograph shows an employee at the Sika plant in Preston in the county of Lancashire, though its UK headquarters are in Welwyn Garden City in Hertfordshire.