Kingspan cuts dividends
Published: 26 August, 2009
DUBLIN: Irish building material manufacturers and merchants have cut share dividend payments.
Building materials group, Kingspan joined builders' merchant, Grafton Group, in suspending dividend payments to preserve cash as they struggle with the downturn.
Chief executive of Kingspan, Gene Murtagh, said: "We'd much prefer to use our resources to expand the company and won't be paying a dividend until we get some comfort." The company is unlikely to paying dividends in 2010, he said.
Kingspan interim results for the six months to the end of June show revenue down 35% to €552.5m and operating profit down 66% to €30.3m for the period compared to the same six months last year.
Mr Murtagh expects to see some revenue increase by 2011 as economic conditions in continental Europe and North America improve. But Kingspan, which generates over half its revenue selling insulated panels, expects trading in the remainder of 2009 will be tough.
"There's no disguising the results, but we're not looking down to the bottom of the hill any more," said Mr Murtagh. He expects some stability to return to the business with the company focused on cost containment.