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Forbo is expecting good results

Eglisau, January 26, 2001

In the business year 2000, the Forbo Group with global activities in floorings and industry specialties recorded net sales of CHF 1 776 million (previous year: CHF 1 755 million). CHF 178 million of total net sales are accounted for by the plastic profiles, decorative films and coated textiles businesses that were divested during 2000. With these divestments Forbo is enhancing its focus on core activities. Related to continued operations, sales were increased by 4% to CHF 1 598 million. The company is expecting group profits to rise to some CHF 90 million, corresponding with 5% of sales. This is a record result in the group's history.

In 2000 net sales of the Forbo Group were CHF 1 776 million (previous year: CHF 1 755 million). Of total sales, CHF 1 009 million were made with floorings where linoleum sales rose by 2% to CHF 411 million. In America and Asia linoleum demand was up 27%. The development was positive also in Great Britain (+10%) and France (+4%). Declining sales were recorded in Switzerland, Germany and Scandinavia mainly due to the general trend of the flooring market. In addition to this, the imminent introduction of a new, broader linoleum range had a negative impact on the business in the last quarter.
Sales with cushion vinyls rose by 2% to CHF 346 million. Business in the European core markets remained under pressure. The export business to Eastern Europe and overseas brought some compensation. Since the textile floorings managed to avoid unprofitable sales, the overall sales did not exceed CHF 213 million.

The adhesives business recorded sales of CHF 207 million - a stagnation compared with the previous year. This was especially due to the market development in Germany and in Switzerland. However, business started to pick up again in the fourth quarter.

With a sales plus of 14% to CHF 384 million, Forbo can look back to a dynamic year in the industrial belting business. Record sales were reached in Asia (30%) and in the USA (20%).

Increase in group profits
On March 28, 2001 Forbo will report in detail on the business results. In spite of higher raw material prices and the negative inlfuence of different currencies, the company is expecting to increase group profit to some CHF 90 million, or 5% of sales. The divestments made will not impact the annual results since the associated costs and value adjustments are charged to existing provisions. For 2001 a further result improvement is being expected although the sales basis will be lower resulting from the divestments made in 2000.

Forbo is a global producer of floorings and industry specialties. It employs some 6 000 people worldwide and has an international network of 28 production companies in 12 countries and 67 marketing organizations 25 countries.

Contact:

Ursula Leonhard
Head of Corporate Communications
Tel: + 41 1 868 25 69
Fax: + 41 1 868 35 69