Forbo Sales Helped by Bonar Acquisition

Baar, Switzerland, Aug. 19, 2009--The Forbo Group said that the decline in sales that began in the last three months of 2008 continued in the first half of 2009.

Net sales were down by 7.8% to $823 million and the operating profit margin for the first half of 2009 was 5.3%.

Forbo said it had an operating profit of $43.4 million and a consolidated profit of $26.5 million.

Forbo Flooring Systems reported net sales of $420 million in the first semester of 2009, corresponding to a growth of 3.2% versus the same period of the previous year.

The acquisition of Bonar Floors made a positive contribution of 21.3%, while the impact of currency effects was negative at 6.2%, the company said.

After adjustment for acquisitions and in local currencies, this corresponds to a decline in sales of 11.9%.

Due to the strategic focus on the commercial market, the various benefits resulting from economic stimulus packages and the integration of Bonar Floors, the decrease in operating profit to $40.4 million was down 19.7% compared to the prior-year period.

Forbo said it expects net sales in the second half to be on par with the first six months and forecasts a slightly higher operating profit due to cost cutting.