Forbo cuts jobs, closes some offices

Forbo has said profits will not improve before the end of the year. www.forbo.com

The Forbo group, which is active in flooring and industry specialties, is to cut about 230 jobs or four per cent of its 5,832 employees.

The company, based in Eglisau, canton Zurich, reported on Tuesday that it had taken early measures in response to the weak business situation.

A statement said that many parts of the organisation had been streamlined and some branch offices closed. Short-time work and temporary production stops were further cost-cutting measures, it added.

Forbo said its sales revenues for the first nine months were SFr1.169 billion ($0.71 billion), a slight decrease of 0.5 per cent compared with the same period last year.

Profit drops

However, the operating profit of SFr74.3 million was 23 per cent below the previous year’s result, due to factors including lower exchange rates.

Partly as a result of the lower financial income, net profit was SFr43.6 million, 34 per cent less than in the record year 2000, the company said.

An improvement in profits is “hardly to be expected” before the end of 2001, the statement added.

Forbo said it was continuing with its strategic objectives. These include the divestment of its carpet business, foreseen by the end of the year, and acquisitions in its core businesses.

However, the company said it was not willing to buy at any price. “The acquisition projects have to be in line with the overall strategy and meet Forbo’s quality criteria,” said Forbo chief executive officer Werner Kummer.

swissinfo with agencies