Eglisau, Switzerland, Mar. 25--The business year 2002 was characterized by continued difficult economic conditions and the acquisition of the Swift activities. The targeted expansion of the Adhesives Business had positive effects in all respects.
The Forbo Group’s international market position was essentially strengthened with the Swift acquisition, which made a substantial contribution to the Group’s result. Thus, a company development could be brought about that was better than that of the overall industry. Sales in the business year 2002 reached CHF 1,531 million, an increase by 13 percent excluding the Carpet Business sold in October 2001 (previous year: CHF 1,354 million). Thus, the Group is back on its growth course following a phase of focusing.
The operating profit (EBIT) of CHF 88 million is nearly unchanged (previous year: CHF 89 million), despite additional amortization of CHF 6 million and unfavorable currency effects of about CHF 4 million. As a result of clearly higher expenses for financing and an increased tax rate, Group profit is at CHF 43 million after CHF 52 million in the previous year. As opposed to this trend, the free cash flow could be increased to a remarkable level of CHF 109 million (previous year: CHF 74 million).
In 2002, the Forbo Group recorded sales of CHF 1,531 million, a 13 percent rise excluding the Carpet Business sold in October 2001. This increase is the result of the Swift acquisition. In parallel, the share of North America in total Group sales rose from 14 percent to 22 percent. Excluding this acquisition, sales declined by 2 percent in local currencies and 5 percent in Swiss Francs to CHF 1,284 million on a comparable basis.
With CHF 180 million, Forbo succeeded in maintaining the operating profit before depreciation and amortization (EBITDA) on the previous year’s level despite global negative influences. This corresponds with an attractive margin of 11.8 percent on sales. The operating profit after depreciation and amortization (EBIT) is CHF 88 million, nearly unchanged from the previous year, although CHF 6 million Swift goodwill were amortized and CHF 4 million resulted from negative currency movements.
Negative impacts came from the unfavorable currency development, strong price pressure and rising raw material, energy and labor costs. This trend was countered with moves to enhance productivity and restructuring programs. This is also reflected in the number of employees which decreased by about 160 excluding acquisitions. Especially as a result of the higher financial expenses related to acquisitions and a higher tax rate, the Group result of CHF 43 million is 18 percent below the previous year.
