Sika's quarterly sales drop on strong Swiss franc, weak China market

April 14 (Reuters) - Swiss construction chemicals group Sika SIKA.S on Tuesday posted a decline in its first-quarter sales, pressured by a stronger Swiss franc and weakness in China's construction sector.

The quarterly sales fell 7% to 2.49 billion Swiss francs ($3.18 billion).

The company reiterated its forecast, provided initially in February, projecting a 1%-4% annual sales increase in local currencies and an EBITDA margin of 19.5% to 20% in 2026.

A prolonged slump in China's construction sector continued to weigh on results, even as Europe showed signs of recovery after the winter months, the company said.

In the Americas, construction activity was impacted by winter storms and economic uncertainty in the United States, Sika said.

Meanwhile, construction activity in the Middle East slowed after the outbreak of the Iran-conflict, despite a double-digit growth at the start of the year, the Swiss chemicals company said.

"We expect global market conditions to remain muted in 2026 and we are acting preemptively," CEO Thomas Hasler said.

Sika said in March that its annual results could trend towards the lower end of its outlook due to economic turbulence linked to the conflict in the Middle East.

($1 = 0.7834 Swiss francs)