BAAR, Switzerland (Jan. 6, 2009)—Flooring, adhesives and belting maker Forbo said its net sales declined considerably in the final quarter of 2008 compared with a year earlier.
The firm said different measures its customers took in December, such as closing plants, instituting compulsory vacation and cutting the workweek, hurt its sales.
Forbo said despite the difficult economic climate, it had record results in the first half of 2008 and earnings were satisfactory through the third quarter. Since then, the profit situation has deteriorated considerably.
The firm said it has taken cost-cutting measures that will partially offset the decline in sales, but it is likely Forbo's net profits from ordinary operating activities for the full year 2008 will be slightly below that for the previous year. Also, net earnings could be negatively affected by potential provisions for restructuring.
For 2009, Forbo said, it does not see rapid recovery of the market happening and assumes that the year will be “significantly more challenging than 2008.”