Frankenthal, Germany, September 7—Tarkett reported EBITA in the first half of 2004 that increased from EUR 52.4 million in the 1st half-year 2003 to EUR 53.3 million.
Lower margins as a result of intensive competition mainly on the residential markets as well as an increase in raw material prices for residential products reduced the positive effect of increased sales volumes.
The Group’s debt was reduced by 13.2% to EUR 275 million at the end of the 1st half-year 2004.
Tarkett’s net profit grew by 30% from EUR 20.4 million for the first half-year 2003 to EUR 26.5 million for the same period 2004.
In the 1st half-year 2004 Tarkett AG achieved sales of EUR 708.7 million as compared to EUR 698 million in the comparable period 2003. This corresponds to an increase of 1.5% at current exchange rates and 4% at constant exchange rates.
Net sales grew by 1.4% at current exchange rates (+ 4% at constant exchange rates) to EUR 684.8 million as compared to EUR 675.5 million.
Sales development by product segment and at current exchange rates was as follows (constant exchange rates in brackets): Resilient Floorings grew by 2.2 % (4.6%), with a plus of 2.1%( 4.1%) in the Residential and 2.3% (5.0%) in the Commercial sector.
Hardwood sales increased by 1.3% (5.8%), while laminate products continued their growth with an increase of 37.2 % (38.5%) This product category now represents 5% of the Group’s total sales. The decrease of 6.5% (6.4%) in the Textile range reflects the weak market situation due to low activity in the market for office space construction.
Sales by region and at current exchange rates (constant rates in brackets) developed as follows: with a slight plus of 0.9% (0.9%) Western Europe shows a stable sales development, mainly as a result of the 11.7% (10.9%) sales increase in the UK and Ireland but also due to the decline of 2.3% (-2.3%) in Germany and of 3.3% (-3.4%) in the Scandinavian market .
Sales in Eastern Europe (including Russia) grew by 17.8% (17.8%), again mainly due to the positive impact of the sales contribution from the joint venture with Sintelon.
Turnover in North America fell by 5%, even though, at constant exchange rates, sales increased by 4.1%.
A continued increase in raw material prices will definitely make it more difficult to further increase the Group’s profitability.
Against this background, the company will continue its strategy with a focus on product innovation, growth markets and increased productivity.
