year in 2001, thanks to key acquisitions in the architectural
and industrial sectors. For the fiscal year ended
December 28, 2001, Sico, Inc. sales rose 8.9% to reach
Sales in the architectural sector
rose 4.8%. The company attributed
the gain to sales from the
recently acquired Bétonel Ltée
unit which were included in final
quarter of the year, and internal
growth of its national brand products.
The company also said sales
gains came from its new color
selection system and integrated
display concept and a number of
Sico’s industrial sector reported
a 33.7% rise in sales, stemming
mainly from the contribution of the
metal coatings operations it
acquired from Chemcraft
International, Inc. in December
2000. Sales consolidation of
Pinturas Industriales Sicorel S.A. de C.V. (Sicorel), following
the acquisition of Sico’s partner’s interest in the
unit, also contributed to growth. Another factor was Sico’s
greater penetration in the North American aerospace
market. The company is now the main supplier of aerospace
coatings for the Canadian Department of National
Operating earnings before depreciation and amortization,
interest, share in results of affiliated companies and
income taxes (EBITDA) rose 11% to $22.1 million, according
to the company. EBITDA for the architectural sector
increased 5.2%, due mainly to the strong performance of
national brand products, retail price increases introduced
in 2000 and 2001 in some market segments, and a general
improvement in productivity. EBITDA for the industrial
sector rose 164.4%.
According to Pierre Brodeur, president and chief executive
officer, Sico is aiming for sales growth of more than
10% in 2002. He said that additional revenues of more
$40 million will be generated on an annual basis from
acquisitions the company has made since December 2000.
Furthermore, Sico’s internal growth will be helped by
the recent addition of new products and development of
new customers in the architectural sector, further penetration
of the industrial sector in North America, and the
gradual improvement of the economy, especially in the
U.S. specialized equipment market, according to Sico.
Sico is also expecting “significant growth” in net earnings.
The acquisition of Bétonel in itself should add approximately
$0.25 to our per-share earnings in 2002,” said Mr.
Brodeur. “We will be in a position to take full advantage of
the important synergies achieved with regard to procurement
and certain other costs, especially at the beginning of
the second quarter, which marks the start of the high season
in the architectural paint market.”
Sico’s industrial sector’s profitability will continue to
improve, “thanks to the development of its position in
high-technology market segments, Sicorel’s growing contribution,
and Sico-Becker’s increasing critical mass in
Europe,” he added.
“We intend to pursue our role as a consolidator by means
of additional acquisitions consistent with our two main
strategic objectives: to become Canada’s largest architectural
paint company, and one of the world’s leading suppliers
of value-added metal coatings for the transportation
industry,” Mr. Brodeur added.