Frankenthal, Germany, June 26, 2006--In the 1st quarter 2006, Tarkett AG reported net profit of 9 million Euro (US$11.3 million), compared to 8.6 million Euro (US$10.8 million) in the 1st quarter 2005.
EBITA for the quarter was 17 million Euro (US$21.4 million), an increase of 3.7 % compared to the 16.4 million Euro (US$20.6 million) achieved in the same period 2005.
The company said this development is mainly attributable to the ongoing margin squeeze especially for its western residential products range due to the ongoing material price increases and the fierce price competition.
Tarkett AG's turnover was 445.2 million Euro (US$559 million) compared to 357.5 million Euro (US$448.9 million) in the same period 2005. This corresponds to an increase of 24.5 % and 7,1 % at constant exchange rates and comparable structure.
Turnover development by product segment, at constant exchange rates and same structure (figures at current exchange rate in brackets) was as follows: sales in Resilient Flooring went up by 8,5 % (+ 15,5 %) .
The company said commercial and to a lesser extent residential product ranges contributed to that positive development. Wood decreased by 3.2 % (+ 4,3 %) mainly due to lower sales in North America. Laminate continued its growth trend with a strong plus of 38.1 % (48 %).
Sales by region and market at constant exchange rates and same structure (figures at current exchange rates in brackets) developed as follows: In Western Europe, as a result of a difficult market environment in France and Germany and a more favourable one in Scandinavia and South Europe, sales went up by 4,7 % (4 %). Once again, Eastern Europe including Russia, showed a double-digit growth of 19.8 % (19.7 %). North America stayed constant with an 0,2 % plus in sales. The plus of 72% at current exchange rates reflects the acquisition of the Johnsonite and Fieldturf business.
The company said an already mentioned increase in raw material prices will continue to be a challenge for the company's future profitability. It said it will react to this with further adjustments in its sales prices and additional measures to reduce indirect costs as well as the implementation of programs to increase productivity.
