Frankenthal, Germany, September 7, 2006--In the first half of 2006 Tarkett reported EBITA of EUR 52.3 million ($US66.5 million), an increase of 22.8 % compared to the EUR 42.6 million ($US54.2 million) achieved in the comparable period 2005.
Tarkett's net profit for the first six months 2006 reached EUR 29.2 million ($US31.7), a 13.6% increase as compared to the EUR 25.7 million ($US35.2 million) recorded for the first half-year 2005.
In the 1st half-year 2006, the group reported sales amounting to EUR 949.3 million ($US1.2 billion) as compared to EUR 764.4 million ($US972 million) recorded in the comparable period 2005. This corresponds to an increase of 24.2% at current exchange rates and 5.5% at constant exchange rates and a comparable structure.
The sales development by product segment and at constant exchange rates and a comparable structure (figures at current exchange rates in brackets) was as follows: Resilient Floorings grew by 8.4% (+ 23.5%). Both the Object and--to a minor extent-- the Residential businesses contributed to this result. Sales in the Hardwood segment decreased by 1.7% (- 7.2%), mainly as a result of a decline in sales in North America. The sales increase in the Laminate business continued with a plus of 37.1% (45.2%).
Sales by market and region at constant exchange rates and a comparable structure (figures at current exchange rates in brackets) developed as follows: against the background of a difficult market situation for the Residential segment in France and Germany on the one hand and a favorable situation in Scandinavia and South Europe on the other hand, West Europe recorded a slight plus of 1.2% (-1.3%).
Once again, sales in East Europe, including Russia, showed a strong growth of 28.4% (+ 43.9%). The strong sales growth at current exchange rates is attributable to the proportional consolidation of the Sintelon Group since May, in which Tarkett is currently holding a share of 43%. Sales in North America remained constant and reached a slight increase of + 0.1%. The sales plus of 69.7% in North America at current exchange rates and structures reflects the acquisitions of Johnsonite and Fieldturf.
The high raw material prices will also continue to be a challenge for the company's future profitability. Tarkett will react to this by introducing additional measures to reduce indirect costs as well as intensifying its programs to optimize its industrial productivity.
The conversion of Tarkett AG from a company quoted on the stock exchange into the unlisted Tarkett Holding GmbH has been concluded following the registration in the Commercial Register on 24th August 2006.
