Sika Drops Sales Growth Target on Weaker Europe Building Outlook
Stock Chart for Sika AG (SIK)
Sika AG (SIK), the world’s largest maker of construction chemicals, said it’s unlikely to reach a medium- term sales growth target of as much as 10 percent as Europe’s debt woes weigh on the region’s builders.
The maker of Sikaflex sealant is now predicting 4 percent to 6 percent growth amid a “continuing uncertain situation” in Europe, it said today. Sales increased 5.8 percent to 4.8 billion francs ($5.2 billion) in 2012, the Baar, Switzerland- based company said today, in line with analysts’ estimates.
“Management is adopting a somewhat less upbeat tone when guiding for medium term growth,” Patrick Laager, an analyst at Credit Suisse in Zurich said in a note to clients. “We also believe that Sika may opt for more external growth opportunities.”
Sika confirmed targets for earnings before interest taxes, amortization and depreciation and for net income.
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