(Adds details, background)
Feb 24 Speciality chemicals maker Sika
on Friday posted a 21.8 percent rise in net profit for 2016 and
said it will propose an increased dividend for 2016.
Zurich-based Sika said net profit rose to 566.6 million
Swiss francs ($563.22 million), beating a forecast of 558
million francs in a Reuters poll.
Sika, which makes chemicals used in the construction and
automotive industries, has been embroiled in a takeover battle
with construction materials company Saint-Gobain for more than
Saint-Gobain has been trying to take control by buying the
controlling stake of Sika's founding family - an attempt that
has been resisted by Sika's management and many of its other
Sika won an important round in the court battle in October,
but the founding family has appealed to a higher court in the
Swiss canton of Zug, with a decision expected later this year.
Sika said it aimed to increase sales by 6 percent to 8
percent in 2017 and achieve overall revenue of 6 billion francs
for the first time.
At the annual general meeting, the board of directors will
propose a 31 percent increase in dividend for 2016 to 102 francs
per bearer share and 17.00 francs per registered share, Sika
The company, which aims to boost profit at a higher rate
than sales, said it plans to open eight new factories and set up
three national subsidiaries in 2017.
($1 = 1.0060 Swiss francs)
(Reporting by John Revill in Zurich and Vishal Sridhar in
Bengaluru; Editing by Sunil Nair)