The Swiss construction chemicals group, Sika Finanz, has forecast it will not match 2000 earnings this year, after reporting a first-half 27.6 per cent fall in net profit to SFr32.2 million.
Sika on Friday blamed lower margins, higher depreciation and adjustment of the value of securities for the decline.
Analysts had expected a sharp fall in results after Sika said in July that profit would be hit by higher prices for raw materials in a tough business environment.
In a statement, the company said it expected the global economy to remain steady, that competition will intensify and raw materials prices will remain "volatile".
However, Sika said it should be possible to achieve its sales target this year of just over SFr2 billion ($1.2 billion).
The company's sales in the first half totalled SFr1.037 billion, a growth of 12.4 per cent over the corresponding period in 2000.
swissinfo with agencies