Baar, Switzerland – Market demand for Forbo’s products has “to some extent recovered more quickly than expected,” the Baar-based company reported 15 Jan.
The 5,400-employee group produces flooring systems, building & construction adhesives, as well as power-transmission and conveyor-belt components.
For 2020 as a whole, the Zug canton manufacturer posted net sales of around CHF1,117 million, about 13% lower than the 2019 level.
But following a steep pandemic-linked decline from mid-2020, Forbo said markets had recovered in recent months, with sales trending “better than anticipated” towards the yearend.
Forbo said it was also helped by steps taken to protect employees and bolster delivery-capability amid the Covid-19 crisis, as well as efficiency measures.
Higher capacity-utilisation, it noted, “had an additional positive effect on earnings, which means that operating profit margins in both divisions improved significantly versus the first half of the year.”
Forbo, therefore, anticipates profits to approach CHF100 million for the full year 2020 – compared to the prior-year CHF138.3 million.
The company will announce detailed figures for 2020 on 4 March, when it publishes its annual results for 2020.