Sika with worldwide growth and solid income

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In the first three quarters of 2008 Sika boosted sales in all regions
and gained 9.5% overall in local currencies. Operating profit before
depreciation (EBITDA) did not quite reach the record level of the
previous year period, but the EBITDA margin of 13.7% could be
maintained nonetheless despite strongly rising raw material costs.

Sales growth
In the first three quarters of 2008 Sika achieved net sales of CHF
3.543 billion. The rate of growth in local currencies amounted to
9.5%, including an acquisition effect of 1.1%. The translational
currency effect was negative at -5.8%. Net sales in Swiss francs
thereby lay 3.7% above the period of the previous year.

Earnings development
Despite massive increases in raw material prices, Sika maintained its
EBITDA and EBIT margins at the level of its half-year result (see the
comparative table below).

in CHF million in % of 6 in % of 9
net months net months
sales 2008 sales 2008
Net sales 100 2'262 100 3'543
Material -45.7 -1'033 -47.0 -1'666
expenses/subcontracting
Gross result 54.3 1'229 53.0 1'877
Operating costs -40.6 -918 -39.3 -1'392
EBITDA 13.7 311 13.7 485
Depreciation/amortization -2.7 -60 -2.6 -93
EBIT 11.1 251 11.1 392

The price increases for raw materials notwithstanding, the company
would have exceeded its EBITDA for the third quarter of the previous
year in absolute terms. Sika assumes that the apex for raw material
prices has passed, as indicated by clearly declining crude oil prices
and poorer economic conditions. Personnel and other operating costs
could be held in the third quarter at the same level as in the
previous year period although Sika invested strongly in management
and service structure in growth markets.

Depreciation and amortization were slightly below the level of the
same period in the previous year. Operating profit (EBIT) amounted to
CHF 392.4 million, or 11.1% of net sales.

Interest expenses, interest income and financial income remained
nearly unchanged, while the influence of currencies on financial
expenses rose slightly. The income tax rate of 29.6% fell one
percentage point below the level of the previous year. Consolidated
net profit amounted to CHF 258.3 million, corresponding to 7.3% of
net sales.

Regions
Sales grew in all regions in local currencies during the reporting
period. At 31.2%, growth in the region IMEA (India, Middle East,
Africa) was again particularly strong, followed by Latin America with
25.3%. Growth in the Asia/Pacific region amounted to 11.9% in local
currencies. In North America Sika achieved sales growth of 8.6%
despite the negative developments in the construction and automotive
industries. In Europe North Sika grew by 7.2%, and by 3.3% in Europe
South.

Divisions
Demand in Sika's significant markets of infrastructure and industrial
construction remained high. The Construction Division thus grew 10.8%
in local currencies in spite of distinct market slumps in various
countries such as USA, England, Ireland, Spain, Japan and New
Zealand. The Industry Division on the other hand grew less strongly
at 5.0%, attributable to weakness in the automotive industry.

Outlook
The full effects of the financial crisis for the real economy are not
yet foreseeable. Sika's midterm target for organic growth
nevertheless remains unchanged at 8% - 10% per year. The company also
upholds its midterm EBITDA-margin target of 12% - 14%. An anticipated
weakening of various markets worldwide could result in below average
growth in 2009.

Consolidated Income Statement from January 1 till September 30, 2008
(not audited)

in % of 1/1 till in % of 1/1 till Changes
net 9/30/2007 net 9/30/2008 in %
sales sales
in CHF mn
Consolidated net
sales 100.0% 3'415.9 100.0% 3'543.1 3.7%
Other operating
income 0.2% 5.2 0.2% 7.3
Changes in
inventory 0.1% 2.4 0.9% 30.3

Operating revenue 100.2% 3'423.5 101.1% 3'580.7 4.6%
Material expenses -46.8% -1'597.1 -48.1% -1'704.2

Gross result 53.5% 1'826.4 53.0% 1'876.5 2.7%
Personnel
expenses* -20.1% -688.1 -20.4% -722.2
Other operating
expenses -18.4% -628.9 -18.9% -669.4

Operating profit
before depreciation
(EBITDA) 14.9% 509.4 13.7% 484.9 -4.8%
Depreciation -2.2% -75.1 -2.1% -73.9
Amortization -0.6% -20.1 -0.5% -18.6
Impairment 0.0% 0.0 0.0% 0.0

Operating profit
(EBIT) 12.1% 414.2 11.1% 392.4 -5.3%
Interest income 0.1% 5.0 0.1% 4.0
Interest expense -0.6% -18.9 -0.5% -18.1
Other financial
income 0.1% 1.9 0.1% 2.3
Other financial
expenses -0.4% -13.3 -0.5% -16.1
Income from
associated companies 0.1% 2.0 0.1% 2.2

Consolidated net
profit before taxes 11.4% 390.9 10.3% 366.7 -6.2%
Income taxes* -3.5% -119.5 -3.1% -108.4

Consolidated net
profit 7.9% 271.4 7.3% 258.3 -4.8%
Profit
attributable to Sika
shareholders 7.9% 271.0 7.3% 257.5
Minority interests 0.0% 0.4 0.0% 0.8

*Restatement of prior year figures due to
application of IFRIC 14 (see half year
report 2008, note 6)

Segment information Sika Group
Consolidated net sales for the first nine month

1/1 till 1/1 till Year-on-year change (+/- in
in CHF mn 9/30/2007 9/30/2008 %)
in Swiss in local Currency
francs currencies effect
By region
Europe North 1'281 1'359 6.1% 7.2% -1.1%
Europe South 830 820 -1.1% 3.3% -4.4%
IMEA [1] 165 195 18.2% 31.2% -13.0%
North America 519 492 -5.3% 8.6% -13.9%
Latin America 275 321 16.8% 25.3% -8.5%
Asia/Pacific 346 356 2.8% 11.9% -9.1%
Consolidated net
sales 3'416 3'543 3.7% 9.5% -5.8%

By operating
division
Construction 2'681 2'811 4.9% 10.8% -5.9%
Industry 735 732 -0.4% 5.0% -5.4%
Consolidated net
sales 3'416 3'543 3.7% 9.5% -5.8%

[1] India, Middle East, Africa (IMEA). Regional reporting
for IMEA has been established on January 1, 2007.

-END-

Sika AG
Zugerstrasse 50
CH-6341 Baar, Switzerland
www.sika.com

Contact: Rainer Weihofen,
Corporate Communications & Investor Relations
Tel.: +41 58 436 68 00
Fax: +41 58 436 68 50
weihofen.rainer@ch.sika.com

Sika AG - a corporate profile
Sika AG, located in Baar, Switzerland, is a global specialty
chemicals company supplying construction markets and manufacturing
industries (automotive, commercial vehicle, building component
manufacturing). Sika is a leader in processing materials used in
sealing, bonding, damping, reinforcing and protecting load-bearing
structures.
Sika's product lines feature high-quality concrete admixtures,
specialty mortars, sealants and adhesives, damping and reinforcing
materials, structural strengthening systems, industrial flooring as
well as roofing and waterproofing systems. Subsidiaries in more than
70 countries worldwide and approximately 11'700 employees link
customers to Sika and guarantee the success of all our business
relationships. Striving to deliver added value to all stakeholders,
Sika generates annual sales of CHF 4.6 billion. Visit our website at
www.sika.com.

The media release and the report can be downloaded from the following
links:

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Sika AG
Zugerstrasse 50 Baar

WKN: 858573; ISIN: CH0000587979;
Index: SMCI, SPI, SPIEX, SMIEXP, SMIM;
Listed: Main Market in SWX Swiss Exchange;
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