Wednesday, March 29, 2017
Forbo performed well and solidly in 2016 amid challenging market conditions, posting good results in both sales and earnings. Both divisions contributed to this success. The result was driven by investments in developing innovative and high-quality products, selectively expanding distribution structures inspecific customer segments and growth markets, enlarging the capacity, and upgrading production facilities. These are the factors that will underpin Forbo’s future success.
Both divisions gained market share in important market segments despite challenging conditions by systematically implementing the Forbo strategy and generating added value for both existing and new customers with convincing products and services.
When the results in local currencies were translated into the corporate currency, the foreign exchange situation produced a slightly positive currency effect compared with the previous year.
Solid sales growth in both divisions
Both divisions contributed to solid growth that came to 4.1% overall in the corporate currency.The attractive product range at Flooring Systems, with new and innovative collections especially for customers in the private sector, has convinced and generated sales growth of 3.4%. Movement Systems reported a sales gain of 5.7% on the back of high-quality, application specific product innovations, along with the targeted expansion of its distribution and service structures.
Overall, net sales in local currencies in the Asia/Pacific and Africa region showed the strongest growth, which came to +5.5%, while North, Central and South America grew by +3.5%, and Europe reported a sales gain of +3.1% amid very mixed market conditions.
Profitability continues to grow
The increased investments Forbo has made in recent years to optimize the global value chain, boost efficiency, and grow capacity, plus a greater focus on selling high-quality and high margin products enabled Forbo to increase profitability once again.
In good shape for 2017
For the 2017 business year Forbo expects market conditions to be similar to 2016, though they are difficult to predict. Forbo still faces significant challenges, especially as it is present on a range of different global markets. Economic and political circumstances can change quickly. Forbo will continue to pursue its tried and proven strategy, convince with its strong brand as well as its high-quality products and services, and further expand its global presence.
Tags: 2016, amid challenging market conditions, both sales and earnings., forbo, Forbo strategy, good results, gratifying year 2016, great well and solidly, increased investments
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