By John Revill
BAAR, Switzerland--Sika AG (SIK.VX) said Friday its efforts to
defeat a $3 billion takeover by French construction materials giant
Saint-Gobain SA (SGO.FR) has been boosted by its
better-than-expected half-year earnings.
Switzerland-based Sika said net profit in the six months to June
30 rose 11% to 197.3 million Swiss francs ($205 million), from
CHF177.6 million a year earlier. The figure beat analyst
expectations of CHF188.3 million.
Sales slipped 1.2% to CHF2.63 billion, just below analyst
forecasts of CHF2.65 billion, reduced by the effect of the strong
Swiss franc that lowers the level of sales outside of Switzerland.
The company said however, that it compensated by greater
efficiencies and lower commodity prices, which boosted its
profitability.
Sika, which makes of chemicals used in the construction and
automotive industries, is currently embroiled in a takeover attempt
by Saint-Gobain, which is attempting to buy its controlling
shareholder for nearly $2.9 billion.
"The results supports us and removes the argument that we don't
focus on the business during our defense and the business will
suffer," said company Chairman Paul Haelg on the sidelines of
Sika's extraordinary general meeting in Baar.
Mr. Haelg and board members have opposed the takeover, saying it
didn't make business sense. "The history of Sika has shown we don't
need a strategic partner for our success," he said.
Write to John Revill at John.Revill@wsj.com
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