Sika says US construction sector unsettled by Trump trade policy
Swiss construction chemicals maker Sika said on
Tuesday the U.S. building market was "unsettled" in March, an
early sign of the impact of President
Sika said it was not directly affected by trade barriers, but pointed to increased market concerns from potentially lengthy trade conflicts.
After a good start in January and February, Sika's sales
growth slowed in
"Consequently growth for Sika has slowed in
During the first quarter Sika's sales rose 1.1% to
The results of the company, whose products are used in
projects like the
Due to its local presence with 45 factories in
"In the U.S. in particular, we have implemented this
decentralized model successfully and now produce close to 100%
of our products locally for the U.S. market," CEO
"The same is true for
Sika said it would use the uncertainties to gain market share, with its organic sales up 0.9% during the quarter, outpacing the overall construction chemicals sector where sales fell by 0.5%.
It confirmed its full-year outlook for 3% to 6% sales growth in local currencies, as well as an over-proportional increase in earnings before interest, taxes, depreciation, and amortization (EBITDA).
"As long as there are no major accidents resulting from a possible trade conflict, its guidance seems achievable," said Bank Vontobel.
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