Sika first half results hit by dollar weakness
The company, which makes products used to strengthen and waterproof walls and floors, became the latest firm to flag the dollar's impact on results, following Nordic industrial companies earlier this month.
The dollar lost value during the first half of the year on concerns about U.S. debt and President Donald Trump's unpredictable trade policies, creating problems for companies such as Sika, which counts the United States as its biggest market.
"The weaker U.S. dollar, which lost 10% against the Swiss franc in the second quarter, as well as ongoing uncertainties in global markets, had an impact on the results," Sika said.
The company, whose additives were used in projects including the Gordie Howe International Bridge between the United States and Canada, now expects only a "modest" sales increase in local currencies.
Previously, Sika had guided for an increase of 3-6%.
During the first six months of 2025, Sika suffered a foreign currency effect of minus 4.3%, which turned local currency growth of 1.6% into a 2.7% decline when converted back into Swiss francs, the company's reporting currency.
Total sales of 5.68 billion Swiss francs ($7.1 billion) in the six months to June 30 fell short of analyst forecasts of 5.72 billion francs, according to a consensus compiled by Vara.
The company's core operating profit (EBITDA) fell to 1.07 billion Swiss francs, missing analysts' forecast of 1.09 billion francs.
Its shares were indicated 3.4% lower in premarket activity in Zurich.
Sika's results offer 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.
Its local currency growth of 1.6% was better than the 1.5% decline in the market overall, with Sika saying it expects to continue to grow faster than the market in 2025.
"In a challenging market environment, we once again outpaced the industry trend and continued to gain market share," Chief Executive Thomas Hasler said.
The company also kept its full-year profit guidance to increase core operating profit faster than local sales growth and achieve a profit margin of 19.5% to 19.8%.
($1 = 0.8026 Swiss francs)
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