Pergo AB’s Sales Down

Trelleborg, Sweden, April 22--Net sales for Sweden’s Pergo AB, excluding currency effects, were down 15% in the first quarter of this year to 679 million Swedish Krona from 905 million Krona in the first quarter of 2002. The decline was due primarily to lower sales of accessories, reduced volumes in the North American market and lower volumes in Europe, where deliveries of low priced products to Ikea were phased out during the first six months of last year. North American sales were down 12% from the first quarter of last year, with sales from new programs at Lowe’s not able to compensate for reduced sales at Home Depot and in the specialty segment. Sales at Home Depot declined as the home center giant opened its doors to more competition, while sales to specialty stores stalled because of delivery problems with Pergo Accolade and Pergo Paradigm. European sales were down 18%, mainly due to the phase out of products at Ikea, though price pressures continued throughout Europe due to over capacity.