Latest news with #chemicals
Reuters
19 hours ago
- Business
- Reuters
Sika first half results hit by dollar weakness
ZURICH July 29 (Reuters) - Sika (SIKA.S), opens new tab gave a more cautious full-year sales guidance on Tuesday after a weaker dollar weighed on the Swiss construction chemical maker's first-half sales and profit. 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)
Reuters
a day ago
- Business
- Reuters
Swiss chemical maker Sika's half-year sales fall, miss analyst estimate
ZURICH, July 29 (Reuters) - Sika (SIKA.S), opens new tab reported lower half-year sales and profit on Tuesday as the weaker dollar shrunk the construction chemicals maker's earnings when converted back into Swiss francs. The company, which makes products used to strengthen and waterproof walls and floors, said its sales fell 2.7% to 5.68 billion Swiss francs ($7.08 billion) in the six months to June 30. Analysts had forecast 5.72 billion francs, according to a consensus compiled by Vara. The company largely attributed the downturn to translation effects of the weaker dollar, which trimmed the revenue from Sika's biggest market - the United States - when converted into Swiss francs. In local currencies, which takes out the impact of currency fluctuations, Sika's sales grew 1.6%, driven by organic growth and a boost from acquisitions. The company's core operating profit (EBITDA) fell to 1.07 billion Swiss francs, missing analysts' forecast of 1.09 billion francs. Sika's results give 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 and the Gordie Howe International Bridge between the U.S. and Canada. "Sika is therefore largely unaffected by trade tariffs and can reliably supply its customers, even in challenging market conditions," the company said. For the full 2025 business year, Sika expects a modest sales increase in local currencies and continues to expect an over-proportional increase in EBITDA and an EBITDA margin of between 19.5% and 19.8%. ($1 = 0.8026 Swiss francs)
Reuters
2 days ago
- Business
- Reuters
EU investigates takeover of Covestro by Abu Dhabi's ADNOC
BRUSSELS, July 28 (Reuters) - The European Commission on Monday said it had opened an investigation into the takeover of German chemicals maker Covestro ( opens new tab by Abu Dhabi's state-owned oil and gas producer ADNOC. The Commission said it had concerns that foreign subsidies granted by the United Arab Emirates could distort the European internal market.
Yahoo
2 days ago
- Business
- Yahoo
Dow Inc. (DOW): Good News About Industrial Economy Isn't Helping, Says Jim Cramer
We recently published . Dow Inc. (NYSE:DOW) is one of the stocks Jim Cramer recently discussed. Dow Inc. (NYSE:DOW) is one of the largest chemical companies in America. The firm's shares have lost 35% year-to-date, primarily on the back of a massive 26% selloff in April after President Trump announced his Liberation Day tariffs. Dow Inc. (NYSE:DOW)'s shares suffered another setback in July after they dipped by 17.5% after the firm's latest earnings report, which saw the firm guide third quarter sales at $10.2 billion, which was lower than analyst estimates of $10.6 billion. Dow Inc. (NYSE:DOW) also slashed its dividend, and here's what Cramer said about the firm after the disastrous earnings report: 'But then, Dow Chemicals, just, Dow, no longer Dow Chemicals. The chemicals are bad. The plastic is bad. So Jim Fitterling had to cut the dividend. I had said that this could happen. I didn't want it. But it's lower for longer, for three years, it's a very unusual negative cycle. And I've got to tell you, for all the good news we hear about the industrial economy, it's not helping. Previously, the CNBC TV host commented on Dow Inc. (NYSE:DOW)'s dividend yield: '9%, see I looked at that today. There were a bunch of guys who cut the price targets. I said to myself, wow, 9%… I have to take a pass because it means that there's something awry.' While we acknowledge the potential of DOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Dow Inc. Cut Its Dividend in Half. Why It Had to Be Done.
FEATURE Advisor TakeKey takeaways from the Barron's Advisor editorial team Chemicals producer Dow cut its dividend on Thursday to preserve cash in tough times. The new quarterly payout is 35 cents, down from 70 cents. Solve the daily Crossword
