Eglisau, Switzerland, April 29--In the first quarter of 2005 Forbo said its business suffered considerably from the effects of the auctioning process which began early November 2004 and was concluded only on April 6, 2005.
Sales in Swiss Franc realized in this quarter decreased by 3% compared with the previous year, with 2% being due to weaker exchange rates than in 2004.
The uncertainties among customers and employees created by the auctioning process that lasted for months, and the heavy workload it created for the management team have impaired the Forbo business in the first quarter.
Sales of the Forbo Group in Swiss Franc terms decreased by 3% compared with the previous year. The flooring and belting business suffered particularly with a decrease of 5% and 4%, respectively. Adhesives sales were stagnating.
Although steps have been taken immediately to compensate for the sales decline and to lower the costs, the auctioning process will impact the 2005 ordinary result.
Forbo will inform on the earnings situation in the context of the financial statements for the half-year 2005.
