Forbo is top manufacturer of flooring systems, adhesives, and movement systems. Forbo’s Flooring Systems division offers
a large range of eco–friendly Marmoleum floors, high–end vinyl flooring, carpet tiles, and entrance matting.
With a market share of over 65%, Forbo is a world market leader in linoleum (Marmoleum) and vinyl floor coverings.
One of Forbo's most popular flooring types is Marmoleum, which is made from renewable and natural ingredients making it an
eco–friendly flooring option. Marmoleum also repels dust and dirt due to is anti-static properties making in allergy
For more information about Forbo, read the latest sales figures for first half of 2009.
Baar, Switzerland, August 18, 2009 –– The Forbo Group as expected, posted a decline in sales which had begun
in the last three months of 2008 continued in the first half of 2009. With net sales down by 7.8 percent to CHF 886.1
million, (US$825.3M) the operating profit (EBIT) margin for the first half of 2009 was 5.3 percent. The early and consistent
implementation of restructuring measures from the third quarter of 2008 onwards had a correspondingly positive impact on the
Sales trend continues to reflect world economic conditions
In the first half of 2009, Forbo generated net sales of CHF 886.1 million (US$825M), 7.8 percent lower than in the same
period of the previous year. Whereas currency effects had a negative impact on sales of 3.8 percent, the acquisitions done in
2008 made a positive contribution of 9.7 percent. Sales growth was recorded in key market segments and in various countries,
further strengthening the company's market shares in all three divisions. This is attributable, inter alia, to the
investments of the last few years in innovative product lines and in the development of growth markets.
Positive margin level thanks to structural adjustments and cost–cutting measures
The operating profit (EBIT) margin amounted to 5.3 percent in the first half–year of 2009, which represents a
decrease of 3.1 percentage points compared with the prior–year period. The measures adopted starting in the third
quarter of 2008 with a view to securing earnings, optimizing structures and processes, and consistently reducing costs have
cushioned the margin contraction.
Early implemented measures generate positive impact on results
Thanks to the early implementation of measures in response to the economic crisis, the Group was able to prevent a more
significant impact on its results. At CHF 46.7 million (US$43.5M), its operating profit (EBIT) was 42.1 percent lower than
the previous year's level. Compared to the prior–year period, Group profit was reduced by 47.1 percent to CHF 28.5
In recent weeks and months, Forbo secured early refinancing as well as extensions of existing credit lines, and on July 6,
2009 successfully launched a bond of CHF 150 million (US$139.7M) with a maturity of 4 years. Together with its current credit
facilities and private placements, this has considerably increased Forbo's financial flexibility and secured the Group's
financing for the years to come.
Performance of the three divisions
Forbo Flooring Systems reported net sales of CHF 451.9 million (US$420.9M) in the first semester of 2009, corresponding to
a growth of 3.2 percent versus the same period of the previous year. The acquisition of Bonar Floors made a positive
contribution of 21.3 percent, while the impact of currency effects was negative at 6.2 percent. After adjustment for
acquisitions and in local currencies, this corresponds to a decline in sales of 11.9 percent. Due to the strategic focus on
the commercial market, the various benefits resulting from economic stimulus packages and the rapid and successful
integration of Bonar Floors, the decrease in operating profit (EBIT) to CHF 43.5 million (US$391.9M), or 19.7 percent
compared to the prior-year period, was kept within limits. The EBIT margin came to a gratifying 9.6 percent.
Forbo Bonding Systems reported net sales of CHF 281.5 million(US$262.1M) in the first half–year of 2009,
corresponding to a decrease of 16.9 percent versus the prior–year period. The drop in sales came to 14.3 percent in
local currencies. Operating profit (EBIT) amounted to CHF 14.3 million (US$13.3M), which represents a decrease of 36.7
percent versus the prior–year period, but a significant improvement on the second half of 2008. This is primarily
attributable to the measures adopted to improve efficiency. These, in conjunction with enhanced key account activities in
segments with a higher added value and an easing in raw material prices, led to an increase of the EBIT margin to 5.1
Forbo Movement Systems generated net sales of CHF 152.7 million (US$.142.1M) in the first half of 2009, corresponding to a
decline of 17.3 percent versus the prior–year period (17.1 percent in local currencies). Plummeting order intake among
Forbo’s customers resulted in a significant drop in sales in some of Movement Systems' key markets. The slump in sales could
only be partially offset by the new distribution channels and markets developed over the last few years. Movement Systems
therefore reported a negative operating profit (EBIT) of CHF –2.8 million (US$–2.6M) for the first
half–year of 2009 (CHF +11.5 million (US$10.7M) in the prior–year period).
Outlook for 2009
Provided that economic conditions do not deteriorate any further, Forbo expects net sales in the second half to be on par
with the first six months and forecasts a slightly higher operating profit due to the implemented restructuring measures,
albeit with considerably higher financing costs.