Forbo Anticipates Difficult 2009

Baar, Switzerland, Jan. 7, 2009--Forbo has been affected by the significant slump in demand for flooring products, the company said.

Many of Forbo’s key markets such as the construction and the automotive industry as well as the capital goods sector are hit particularly hard.

Forbo’s said its net sales were stable until the third quarter 2008. Since October, however, they have declined considerably compared to the previous year.

Furthermore, net sales fell significantly in the course of November. Net sales for December were expected to be significantly lower than for the same month of the previous year.

During the first six months of 2008, Forbo again posted a record result.

Owing to the sales trend in the past two months, though, the profit situation has deteriorated considerably, the company said.

Forbo expects that net profit resulting from ordinary operating activities for the full year 2008 will be slightly below the previous year.

Forbo said it does not expect a rapid recovery of the market and therefore assumes that 2009 will be significantly more challenging
than 2008. The company did not forecast sales or earnings.