Forbo Group recently reported net sales of CHF 649.4 million (approximately $653.2 million) in the first half of 2019, compared to CHF 668.8 million (~ $672.7 million) in the 2018 first half. This represents a slight decline of 0.6% in local currencies (- 2.9% in the corporate currency).
The Forbo Flooring Systems division reported net sales of CHF 438.3 million (~ $440.8 million) in the first half of 2019, which is equivalent to a sales decrease of 2.3% in local currencies (- 5.3% in the corporate currency). While the markets in Europe faced a variety of challenges, Eastern Europe reportedly stood out for its positive performance. The construction industry in the U.S. slowed down after the strong showing in the previous year; major projects and school building renovations were either scaled back or postponed. In the Asia-Pacific region, Flooring Systems felt a restrained demand in China; Australia, Japan, and South Korea merit special mention on their positive development. Forbo reports that building and construction adhesives activity posted encouraging sales growth on the whole.
Forbo reports that the outlook for full year performance remains challenging. In the second half, Forbo anticipates a further economic slowdown in a number of countries. The group will reportedly counteract the weaker demand by taking targeted measures in sales/distribution and making further efficiency improvements. For 2019, Forbo expects a further slight increase in group profit, assuming no change in the currency situation and a largely unchanged economic environment.
Additional details are available at www.forbo.com.