Forbo belts unit reports weak results amid economic headwinds

Baar, Switzerland – Forbo Group has reported a significant decline in first-half operating profit, due mainly to higher costs and underutilised assets.

Operating profit for the first six months of the year fell 30% year-on-year to CHF43 million (€46 million), as sales declined 4% to CHF547 million, the Swiss group reported 29 July.

Group revenue was significantly impacted by the stronger Swiss franc during the first half, while lower capacity utilisation and inflation-driven personnel costs drove down earnings.

While demand in both divisions remained subdued, Forbo said its ‘flooring systems division’ was “stable”, while the belts ‘movement systems division’ performed weaker than expected.

The period “was marked by a continued weak global economy, trade tensions, geopolitical conflicts, and a strong Swiss franc all of [which] dampened sentiment and curbed customer investments across international markets,” it said

In the ‘flooring systems’ unit, results were supported by “targeted investments in sustainable product innovation, productivity improvements, logistics optimisation, and enhanced customer orientation.”

To address the weak performance, meanwhile, the ‘movement systems’ unit is focusing on pricing improvements and reshoring “selected tariff-affected products to US production.”

The division is also working on expanding its sustainable portfolio, and driving targeted marketing initiatives in food and logistics.

Furthermore, a new production line in Japan strengthened the division’s operational competitiveness, while “momentum persisted in airport, e-commerce, and recycling-related segments.”

On its recent executive changes - with Jens Fankhaenel stepping down as CEO in April due to health reasons, and the departure of CFO Andreas Jaeger at the end of October 2025 – Forbo said it had taken “prompt action” to fill the key roles.

The CEO search, it said, is “in an advanced stage”, while the recruitment process for a new CFO has commenced.

To bridge the temporary gap in the group executive board, Forbo said it will appoint “an experienced interim CFO ahead of Andreas Jaeger’s departure.”