Baar, Switzerland, August 22, 2006--Forbo increased its sales in the first half of 2006 by 12.5% to CHF 933.1 million (US$759.7M). The operating profit (EBIT) improved by 81% to CHF 55.1 million (US$41.6M) (previous year before special charges: CHF 30.5 million (US$24.8M)). The net profit of CHF 26.8 million (US$21.8M) represents a return to positive results.
Net sales in the first half of 2006 increased by 12.5%. The acquisition of the adhesives company Victa in Guangzhou/China contributed 1.7 percentage points to this increase after currency adjustments. Robust economic development in the USA, the continued high level of dynamism in the Asian markets and an improved economic situation in Europe strongly supported the growth in all three businesses.
The determined implementation of strategies, measures to increase efficiency and the falling away of special charges significantly strengthened the profitability of Forbo Group.
The operating profit (EBIT) was raised by 81% to CHF 55.1 million (US$44.8M) (previous year before special charges: CHF 30.5 million (US$24.8M)). With an EBIT margin of 5.9%, the profitability of the Group has clearly improved by 2.2 percentage points. All three businesses contributed to this improvement.
The consolidated net profit rose to CHF 26.8 million (US$21.8M) (previous year: CHF -6.1 million (US$4.9M)).
The flooring business achieved sales of CHF 393.8 million (US$320.5M) (previous year: CHF 370.8 million (US$301.8M). This represents a growth of 6.2%. The operating profit increased significantly in comparison with the previous year, by 54% to CHF 30.8 million ($US25.1M)) (previous year before special charges: CHF 20.0 million (US$16.3M)).
The adhesives business increased its sales by 21.4% to CHF 367.5 million (US$299M)(previous year: CHF 302.7 million (US$246.3M)). Victa (Guangzhou) Chemicals Co. Ltd., China, acquired in the reporting period, contributed CHF 15.2 million to this rise in sales. The operating profit increased in comparison with the previous year by 35% to CHF 25.8 million (US$20.1M) (previous year: CHF 19.1 million (US$15.5M)).
In the belting business, sales in the first half of the year amounted to CHF 171.8 million (US$139.7M), an increase of 10.2% (previous year: CHF 155.9 million (US$126.8M)). Compared to the same period of the previous year, the operating profit rose by 35% to CHF 4.6 million (US$3.7M) (previous year: CHF 3.4 million (US$2.8M)).
If the economic framework conditions remain as positive as they are at the moment, Forbo expects a consolidated net profit for the full year of approximately CHF 50 million (US$40.7M).
