Kingspan expects profit increase
Published: 15 November, 2012
CAVAN: Building materials group Kingspan rexpects to report a full-year operating profit of EUR105 million, up 10% on 2011.
But in its third-quarter trading update earlier this week, it also pointed to weaker sentiment and an easing in building activity across a number of its markets.
It said that while "persistent economic and construction weaknesses" have the potential to become more pronounced in early 2013, it expected the structural and global dimensions of Kingspan's business "should go some way to offsetting this".
In the nine months to the end of September revenues rose to EUR1.16 billion, up 1.6% on the previous year.
While the pace of sales growth "moderated" through the third quarter, as sales fell by 0.7 per cent on third-quarter 2011, Kingspan's overall trading margin increased by 0.4% year-on-year, in line with the margin reported in the first half of the year.
Across insulated panels and insulation boards revenue increased by 3% while sales in access floors were up by 11% excluding its Australian acquisition earlier in the year.
Sales in its environmental division plummeted by 18% in the first nine months of the year.
Kingspan also noted that sentiment "undoubtedly weakened further" in the third quarter due to a "deepening lack of confidence in Europe" and the US commercial construction market being in "somewhat of a holding pattern".