ZURICH, July 29 (Reuters) - Sika reported lower
half-year sales and profit on Tuesday as the weaker dollar
shrunk the construction chemicals maker's earnings when
converted back into Swiss francs.
The company, which makes products used to strengthen and
waterproof walls and floors, said its sales fell 2.7% to 5.68
billion Swiss francs ($7.08 billion) in the six months to June
30.
Analysts had forecast 5.72 billion francs, according to a
consensus compiled by Vara.
The company largely attributed the downturn to translation
effects of the weaker dollar, which trimmed the revenue from
Sika's biggest market - the United States - when converted into
Swiss francs.
In local currencies, which takes out the impact of currency
fluctuations, Sika's sales grew 1.6%, driven by organic growth
and a boost from acquisitions.
The company's core operating profit (EBITDA) fell to 1.07
billion Swiss francs, missing analysts' forecast of 1.09 billion
francs.
Sika's results give insight into the health of the broader
construction industry, with its chemical additives being used in
infrastructure projects such as the Daimer Basha dam in Pakistan
and the Gordie Howe International Bridge between the U.S. and
Canada.
"Sika is therefore largely unaffected by trade tariffs and
can reliably supply its customers, even in challenging market
conditions," the company said.
For the full 2025 business year, Sika expects a modest sales
increase in local currencies and continues to expect an
over-proportional increase in EBITDA and an EBITDA margin of
between 19.5% and 19.8%.
($1 = 0.8026 Swiss francs)