Start of the year in line with expectations
Business performance first quarter 2002
During the first quarter of 2002 Sika Group generated net sales of CHF 464 m (previous year CHF 472 m). In local currency, this corresponds to an increase of + 3.5 %. The effect of the conversion to Swiss francs amounts to - 5.1 %. The gross margin improved relative to the previous year. Earnings are in line with expectations.
Compared to the previous year the Construction and Industry Divisions sales in local curren-cies rose by + 4.3 % and + 1.8 % respectively.
Outlook
A difficult economic and political environment in certain regions of the world, and uncertain developments of raw material prices and exchange rates, make it difficult to issue a forecast for the rest of the year. The situation in the southern part of Latin America gives rise to con-cern. In the Automotive business, Sika was able to win additional contracts which will have positive financial impacts in the years ahead. In the current year Sika is focusing on imple-menting its programs to increase efficiency, as well as on introducing new, innovative pro-ducts. Overall, we are expecting to see moderate growth in sales.