UPDATE 1-Sika reports 9 month increase in sales and profit

(Updates with details, background)

October 22 (Reuters) – Swiss chemicals company Sika AG on Friday announced an 18.2% increase in sales in the first nine months of the year as it sold more products to the construction industry , while overcoming rising commodity prices and supply bottlenecks.

Sika, whose compounds are used to strengthen and waterproof walls and floors, said its sales reached 6.86 billion Swiss francs ($ 7.48 billion) in the nine months ended Sept. 30, against 5.81 billion Swiss francs a year earlier.

Operating profit (EBIT) jumped 32.2% to 1.05 billion Swiss francs from the previous year, and net profit jumped 36.3% to 765.1 million Swiss francs .

Sika also reiterated its full-year operating profit forecast, which is expected to grow at a faster pace than sales growth in local currencies.

The company also expects its operating profit margin to reach 15% for the first time in 2021, despite raw material and supply chain constraints.

Sika previously said it expected a 4% increase in the prices it pays for materials such as polymers and that it would offset the additional cost with price increases. ($ 1 = 0.9175 Swiss francs) (Reporting by Mrinmay Dey in Bengaluru and John Revill in Zurich; edited by Anil D’Silva)

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