Frankenthal, Germany, May 4, 2006--For the business year 2005, Tarkett AG recorded a turnover of EUR 1,622 million (US$2.04B) compared to EUR 1,436,8 million (US$1.81B) in the reference period 2004.
This corresponds to an increase of 12.9 % at current exchange rates and 6.1 % at constant exchange rates and same perimeter.
Sales by product segments and at current exchange rates (figures at constant exchange rates in brackets) developed as follows: Sales in the Resilient Flooring segment increased by 9.7 % (2.5 %), with both divisions contributing to this growth. Resilient residential grew by 7.1 % (6.7 %), while Resilient Commercial achieved an increase of 12 % (-1.1 %). Wood also reports a plus of 2.2 % (2.3 %). Once again, Laminate was able to continue its strong growth trend and came in with a disproportionate increase of 51.6% (50.4%).
Sales by regions and markets and at current exchange rates (figures at constant exchange rates in brackets) developed as follows: driven by the sales contribution coming from the acquisition of Marley as well as the positive development in Scandinavia and South Europe, West Europe showed an increase of 7.7 % (2.5 %). Once again, the turnover in East Europe, including Russia, continued its strong growth--this time by 25.4 % (25.2 %) and mainly in the Residential segment. Sales in North America grew by 17.4 %, which is mainly attributable to the acquisition of 71 % of the shares in Fieldturf. At constant exchange rates, this region was able to record an increase of 3.9 %.
The Group"s EBITA for 2005 amounted to EUR 93.8 million (US$118.1M) compared to EUR 97.3 million (US$122.5M) reported for 2004. This development is mainly attributable to the continued high raw material prices for resilient products. Price increases could only partially neutralize this negative impact.
However, Tarkett was able to increase its net profit from EUR 42.5 million (US$53.5M) in 2004 to EUR 57.8 million (US$72.8M) for the business year 2005. This improvement is largely due to the fact that IFRS does not allow the recognition of goodwill amortisation from 2005 onwards, which accounted for 13,4 Meuro in 2004.
In the light of the continued tense situation prevailing in the market for raw materials, Tarkett is going to intensify its already initiated cost-saving programs and measures to optimize its productivity. In addition to this, the company will continue its strategy with a focus on innovation, growth markets and increased productivity.
