Tarkett Posts Net Profit of 70.2 Million Euros

Paris, France, March 29, 2010--Tarkett said that depite a 17% drop in sales to 1.7 billion euros, it posted a net profit of 70.2 million euros.

The company said the strong performance is based on a rapid adaptation to new customer needs and the implementation of productivity plans, which have led to more than 100 million euros in savings on a yearly basis, excluding the favorable impact of raw material prices.

“In 2010, we will step up the implementation of our profitable growth strategy by continuing to invest in innovation and acquisitions,” said Tarkett Group CEO Michel Giannuzzi.

The company said that operating cash flow (before cost of strategic acquisitions) reached 271 million euros, an increase of 41% compared to 2008.

The company invested 175 million euros on acquisitions, including Fademac, leader in resilient flooring on the South American market, Sintelon, based in Serbia, and Atlas Tracks, a specialist in athletics tracks in the U.S.

Tarkett also created a joint venture in Turkey with the company Aspen, and set up a new factory for laminate flooring in the Moscow area.

Tarkett also launched an innovation strategy with, for example, the recent "IQ Natura,l" the first homogeneous vinyl flooring made with 75% natural and renewable raw materials, and also "TarkoSpray", a solvent-free aerosol glue.