Eglisau / Zurich, Switzerland, October 25, 2005—Forbo, in the first nine months of the current business year, recorded sales of CHF 1,266.6 million (US$ 986.7 million). Compared with the previous year, this represents an increase of 2.2% in Swiss Francs or 2.7% in local currencies. The restructuring measures are on track.
At CHF 560.8 million (US $ 437 million), the flooring business showed a slight decrease by 0.6% (0.5 % in local currencies), in contrast with increases in the other businesses. The adhesives business recorded 5.0% sales growth (5.7% in local currencies) to CHF 465.3 million (US $362.5 million), partly due to higher sales prices. The belting business increased sales by 3.9% (4.8% in local currencies) to CHF 240.5 million (US $187.3 million).
At CHF 437.2 million, Group sales in the third quarter are 6.2% (4.6% in local currencies) higher than in the third quarter 2004. Notably the adhesives business (+ 10.9%) and the belting business (+ 8.7%) contributed to this development. The flooring business recorded a sales plus of 1.5%. All in all, third quarter sales were positively influenced compared with the previous year, by the stronger US Dollar and the stable Euro.
Raw material prices that had risen sharply in the first half-year already continued to go up and could only partly be passed on to the products. This had a considerably negative effect on margins, especially in the adhesives business.
The restructuring measures are making progress as planned. The announced need for special charges of some CHF 40 million (US $31.2 million) for can be maintained.
Provided the economic conditions continue to be positive, Forbo is expecting slightly higher sales for the entire business year compared with the previous year and a positive result before special charges.
