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Sika Shares Jump After Q1 Sales Outpace Analyst Estimates

Wall Street Journal US Business •
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Shares of Swiss construction materials specialist Sika surged in European trade after the company reported first-quarter sales figures that managed to surpass market expectations, despite a generally tough macroeconomic environment.

Revenue for the three-month period reached 2.49 billion Swiss francs ($3.18 billion), exceeding the consensus forecast of 2.46 billion francs compiled by Visible Alpha. This top-line result represented a 0.9% growth in local currencies, though it was a slight 0.2% dip on an organic basis.

Investor reaction was swift, pushing the stock up 8.7% to 149.1 francs per share by mid-morning. Momentum appeared strongest in the Asia-Pacific market outside of mainland China, where organic growth hit 5.2%, driven by activity in India and Southeast Asia.

Beating expectations on sales provides a measure of resilience for Sika amidst broader economic headwinds affecting the construction sector. The positive market reception suggests investors view the slight organic contraction as manageable given the current climate.