Sika Drops Sales Growth Target on Weaker Europe Building Outlook
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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