Forbo Earnings Beat Estimates on European Sales

Zurich, Switzerland, August 21, 2007–Forbo Holdings AG reported an improved first half with net profit of 46.6 million sfr, up from 19.8 million a year ago, driven by strong demand in central, south and eastern European markets.

The Swiss manufacturer of flooring systems said it expects a similarly strong performance in the second half.

Earnings before interest and taxes in the first half rose 32.7% to 73.1 mln sfr, with the margin improving to 7.3% from 5.9%.

Sales were up 7.5% year-on-year to 1.004 billion sfr.

The group’s first half earnings exceeded analysts’ consensus forecasts, while sales fell short of expectations.

Analysts had called for a net profit of 45.5 million sfr and sales of 1.014 billion sfr.

The company said that new product launches for the commercial segment and the expansion in new markets in Eastern Europe drive the earnings.

Earnings from linoleum sales rose by 35.1%, the company said.