Eglisau, Switzerland, February 1--In the business year 2004, Forbo raised net sales by CHF 23.4 million ($19.7M) to CHF 1,622.3 million ($1.36B), which corresponds to an increase of 1.5% over the previous year.
This is essentially the result of the positive development of sales in the adhesives (plus 3.6 %) and belting (plus 3.4 %) businesses, whereas sales of the flooring business remained slightly below the previous year’s level. Forbo could stop the negative trend of recent years and again record positive organic growth.
The business year 2004 was influenced by the weak demand in Western Europe and the continued US Dollar weakness. Under these difficult market conditions, Forbo increased sales from CHF 1,598.9 million ($1.34B) in the previous year by CHF 23.4 million ($19.7M) to CHF 1,622.3 million ($1.36B), corresponding with an increase of 1.5% or 2.3% in local currencies, respectively. This means that Forbo could stop the negative trend of recent years and again record positive organic growth.
Sales of the adhesives business rose by 3.6% to CHF 577.7 million ($485.7M) compared with the previous year, or by 5.7% in local currencies. The increase was mainly due to higher than average growth in North America and Asia, and to consistent alignment to strategic customer segments.
Sales of the flooring business amount to CHF 737.6 million ($619.7 M) and were slightly below the previous year´s level, minus 0.9% or minus 1.5% after currency adjustment. The decline in some European countries could not be fully compensated by the favorable sales increase of 14.7% in terms of local currencies in North America.
Sales of the belting business grew by 3.4% to CHF 307.0 million ($257.9M) in local currencies plus 5.3%. Sales improved in all the regions. The continued expansion of worldwide fabrication capacities and distribution structures had also a positive effect.
The annual accounts will be published at the occasion of the media conference on March 22, 2005.
