ZURICH, Jan 13 (Reuters) - Swiss construction chemicals maker Sika reported a 4.8% drop in full-year sales on Tuesday, hurt by a downturn in China and the strength of the Swiss franc. The company,
Sika Reports Decline in Sales Due to Weakness in China Market
Impact of Market Conditions on Sika's Sales
ZURICH, Jan 13 (Reuters) - Swiss construction chemicals group Sika reported a drop in full-year sales on Tuesday, sending its shares 7% lower, after a downturn in China and a stronger Swiss franc.
Sika, whose chemical additives have been used in projects including the Elbphilharmonie Concert Hall in Hamburg and the Grand Egyptian Museum in Giza, said its annual sales fell 4.8% to 11.20 billion francs ($14.04 billion).
That missed expectations for 11.42 billion francs in a consensus of analyst forecasts gathered by Visible Alpha.
Sales Performance Overview
"Global markets were soft in the fourth quarter, including U.S. commercial construction trends, which were exacerbated by the government shutdown," CEO Thomas Hasler said in a statement.
"Additionally, China saw continued market weakness in the residential building sector."
China is Sika's second-biggest market, making up around 10% of its annual sales - 8% for construction chemicals and 2% for chemicals used by automotive makers for products like adhesives.
Sika's sales were also weighed down by a strong franc, which gained 14% against the U.S. dollar in 2025.
In local currencies, which removed the impact of the franc's appreciation, sales grew by a modest 0.6%.
Future Expectations and Job Cuts
Sika, whose results give an insight into the health of the broader construction sector, said it expected its full-year EBITDA margin would be slightly above 19%.
The company, which is due to report its full-year profit on February 20, had previously said it expected a profit margin of around 19% after one-off costs.
In October, Sika said it would implement structural changes in its persistently weak markets, including cutting up to 1,500 jobs.
Analyst Reactions and Market Insights
Sika's shares reacted negatively to the update, losing 7% in early trading, with Zuercher Kantonalbank describing the results as "restrained."
Bank Vontobel analyst Alexander Koller said the China weakness and drag from foreign exchange were overshadowing a healthy operational performance.
"Positive momentum in the coming months could be supported by favourable impulses from the US economy," he added.
($1 = 0.7977 Swiss francs)
(Reporting by John Revill; Anusha Shah in Bengaluru; Editing by Subhranshu Sahu and Alexander Smith)
