Tarkett AG
Tarkett AG: 1st quarter 2005 results

Ad hoc announcement §15 WpHG 1st quarter 2005 results Tarkett AG: 1st quarter 2005 results Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Tarkett AG: 1st quarter 2005 results Frankenthal.- For the 1st quarter 2005, Tarkett AG reports a turnover of 357.5 million Euro compared to 341.5 million Euro in the same period 2004. This corresponds to an increase of 4.7 % and 1,7 % at constant exchange rates and comparable structure , the acquisition of Marley Floors late in 2004, explaining the difference. Turnover development by product segment, at same exchange rates and same structure (figures at current exchange rate in brackets) was as follows: sales in Resilient Flooring went slightly down by 0,7 % (+ 4,8 %) Resilient Residential grew by almost 3.4 % (2.3 %), while sales of resilient floorings in the Commercial segment, including Linoleum, decreased by 4.1 % (+ 6,8 %). Wood decreased by 3.9 % (-5.9 %), whereas Laminate was able to continue its growth trend with a strong plus of 52.2 % (51.9 %). Sales by region and market at same exchange rates and same structure (figures at current exchange rates in brackets) developed as follows: with a minus of 0.8 % ( + 5,4 %), West Europe showed a slightly negative sales development. This decrease is mainly attributable to the large volume markets like France that showed a minus of 6.5 % (- 7.7 %). The figures in detail: the UK down by 11 % (+ 40 %), South Europe, including the Benelux countries, grew by 8.5 % (+11 %), the German market, including Switzerland and Austria, showed a plus of 4.8 % (+ 7.4 %) and North Europe went down by 0.1 % (+ 2,1%). Once again, sales in East Europe, including Russia, showed a double-digit growth of 19.3 % (20.5 %), benefiting from the sales contribution from the joint venture with Sintelon. North America increases by 0,8 % in sales but reports a decrease of 3.4 % at current exchange rates.. EBITA for the 1st quarter 2005 could not keep pace with the sales development and amounted to 16.4 million Euro, a decrease of 33 % compared to the 24.6 million Euro achieved in the same period 2004. This development is mainly attributable to the continued increase in raw material prices for resilient products that had an especially negative effect on the Residential division’s result and that could only partially be compensated for through the sales price increases that, in the meantime, have come into effect. Against this background, Tarkett AG’s net profit for the 1st quarter 2005 amounted to 8.6 million Euro, compared to 10.6 million Euro for the 1st quarter 2004. However, in accordance with the new IFRS norm, the first quarter results do not include any allowance for goodwill amortization. Would this norm have been applied in 2004, the comparable 1st quarter 2004 net profit would have amounted to 14.0 Mio Euro. The already mentioned increase in raw material prices will continue to be a challenge for the company’s future profitability. Tarkett AG will react to this with further adjustments in its sales prices and additional measures to reduce indirect costs as well as the implementation of programs to increase productivity. Tarkett AG Nachtweideweg 1 – 7 67227 Frankenthal Deutschland ISIN: DE0007002008 WKN: 700200 Listed: Amtlicher Markt in Frankfurt (General Standard); Geregelter Markt in Berlin-Bremen; Freiverkehr in Düsseldorf, Hamburg, Hannover, Stuttgart End of ad hoc announcement (c)DGAP 26.04.2005 260847 Apr 05