Baar, Switzerland -- Belting, adhesives and flooring group Forbo doubled its operating profit in the first half of 2010 to CHF 58.7 million ($56.3 million and the sale of its Rieter shares also produced extraordinary income of CHF 32.2 million.
Forbo said in its 17 Aug results announcement that its net sales of CHF 918.8 million are equivalent to solid growth in local currencies of 6.2 percent compared with H1 2009.
Forbo lifted operating profit (EBIT) to CHF 83.9 million, which it said was "a significant increase," of 79.7 percent.
The group said its expanded sales and distribution organisation, coupled with structural adjustments in the past two years, new and innovative products, and a strong customer focus are now yielding results.
Bonding Systems and Movement Systems reported double-digit sales growth in local currencies of 11.8 percent and 10.1 percent respectively. Flooring Systems posted sales growth of 1.5 percent in local currencies.
According to the Swiss group, "Demand stabilised in most regions. Distinct growth trends were clearly visible in customer segments that are crucial for Forbo such as machine tools and plant engineering as well as consumer durables such as cars, furniture, and textiles."
Also, Forbo noted, customers have given the go-ahead "for orders from logistics projects that had been previously postponed."
Forbo's Movement Systems division, which makes a wide range of belting including polyurethane types, is its smallest unit, reporting net sales of CHF 165.1 million in H1 2010, equivalent to an increase in local currencies of 10.1 percent versus H1 2009.
This increase in net sales, along with the adjusted structures, resulted in a sharp rise in operating profit (EBIT) to CHF 10.5 million (H1 2009: CHF -2.8 million).
Forbo's Flooring Systems division is its largest business unit: it reported net sales of CHF 449.1 million in H1 2010, while Bonding Systems had net sales of CHF 304.6 million in the same period.
"
