Forbo AG (CH-8193 Eglisau; www.forbo.com) is parting with CEO Werner Kummer (56) because of the “unsatisfactory earnings situation.” His successor is This Schneider. In addition, the chairman of the board of directors, Karl Janföri, has stepped down and is being replaced by the current vice president, Willy Kissling.

The manufacturer of floor coverings, synthetic belting and adhesives posted a 4% increase in sales to CHF 1.6 bn (EUR 1 bn) in 2003 – an increase of 7% in local currencies. Group full-year earnings, at CHF 14m, were nevertheless only slightly above the figure recorded for the first half-year. Earnings in 2002 totalled CHF 42.6m.

Forbo blames the the overall economic environment with a resulting further decline in margins, the increasing weakness of the dollar and restructuring costs due to the job cutting programme. The company said that most of the targeted 220 jobs already have gone.

With sales of CHF 729m, the floor coverings business declined by 1.7% in local currencies. Here, because of the sluggish building activity, the shortfalls with linoleum were only partly compensated by the extended product range for plastic floor coverings for the contract sector. All in all, the company managed to strengthen its market position. The “Siegling” synthetic belting activities boasted sales last year of CHF 297m, which, in local currencies, were up 1.4% on the previous year. Despite the tough competitive situation, slight growth was achieved in some segments, such as the food and printing industries.

On the whole, however, sales in western Europe developed unsatisfactorily for the Swiss manufacturer. Positive exceptions were France and the rest of southern Europe for floor coverings and adhesives, and Germany for belting. The company said the growth markets of eastern Europe, North America and Asia showed even more momentum in the last two months of 2003, but earnings were unable to keep pace.