Swiss Forbo with higher operating profit
A very slight decrease of 0.1 % but a marked upturn in operating profit, these results reports Swiss Forbo, a leading producer of floor coverings, building and construction adhesives, as well as power transmission and conveyor belt solutions
In local currencies Forbo’s sales would have increased 0.3 %, but in turn EBIT rose by 12.7 %, while group profit from continuing operations showed a significant increase of 19.2 %.
Flooring Systems to a large extent offset the slump in demand in the public sector and in individual European markets by opening up new market segments. Movement Systems increased sales in all regions and successfully compensated for what was in some cases strong depreciation of currencies in it markets, especially in Japan. After group sales decreased slightly in the first half of 2013, it increased again the second six months, total sales of Movement Systems (27.2 % share of total group sales amounted totally to CHF 326.2 million (CHF 327.2 million) and Flooring Systems (72.8 % share of total group sales) achieved USD 873.5 million (CHF 873.9 million), therefore total net group sales were CHF 1199.7 million (CHF 1201.1 million). Flooring Systems reported an operating profit (EBIT) of CHF 113.3 million, and Moving Systems CHF 31.7 million.
Forbo’s management expects 2014 a very mixed economic environment. The two divisions are well positioned and will focus on achieving operational excellence and impressively strong market performance.