Europe´s biggest manufacturer of floor coverings, Tarkett AG (D-67225 Frankenthal; www.tarkett.com), increased its earnings considerably in 2003. Net profit climbed by more than 40% to EUR 42.3m, thanks especially to the success in eastern Europe of STS (YU-21400 Backa Palanka; www.stsfloors.com), the 50:50 joint venture with Serbian floor coverings manufacturer Sintelon, established in 2002. Group sales, on the other hand, declined 3% to EUR 1.39 bn, primarily due to exchange rate shifts. Sales of flexible PVC and linoleum floor coverings, which generate nearly 60% of the company´s total sales, fell to EUR 831m (EUR 856m).

Tarkett has announced plans to concentrate on its core businesses (PVC floor coverings, wooden floors and laminate). The “needlefelts” division is to be sold, and with the proceeds the company will go on a “buying trip” to eastern Europe, Asia and North America. In 2003, its attempt to acquire a British manufacturer of flexible floor coverings failed. In China, the company wants to build a production facility for contract floor coverings by the end of 2005 – a partner is still being sought. A similar project is also planned for Russia in the medium term.

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Tarkett AG 2003 annual report as PDF document (908 KB)