Baar, Switzerland - Flooring, adhesives and belting group Forbo is anticipating net sales of around CHf 880 million ($813 million) for the first six months, about 8 percent lower than in the first half of 2008. Swiss group Forbo said exchange rates had a negative impact of about 4 percent on net sales, while acquisitions in 2008 "made a gratifying contribution of about 10 percent to net sales development."
According to Forbo, which has a polyurethane belt business called Forbo Siegling, the economic crisis has seriously affected many of its customers. The company said that, although Forbo performed very well in key market segments and various countries, the decline in sales, which started in the last quarter of the previous year, continued during the first six months of 2009, as expected.
Based on the provisional figures for the first half of 2009, Forbo is forecasting an operating profit (EBIT) of around CHf 45 million, due to its cost-cutting measures since the third quarter of 2008 and to its investments in recent years to develop growth markets.
Barring any further deterioration in the economic environment, Forbo said it expects net sales in the second half to be on a par with the first six months and forecasts a rise in operating profit due to the changes it has made.
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