20th Apr 2018 09:51
LONDON (Alliance News) - Kingspan Group PLC said Friday it has made a "sluggish start" to the new year and that its first half trading margin will be lower than a year ago due to the impact of acquisitions and year-on-year relative mix of markets and activity.
The building materials company, however, added it remains well positioned for year as a whole and its current order backlog points towards a good second quarter.
The "sluggish start" was attributed to a prolonged winter season in several of the company's operating markets. Sales for the three months to March-end totaled EUR895 million, up 8% on the year ago period, driven by acquisitions and positive exchange rate movements.
"By market during the first quarter, the UK was tough overall although Insulated Panels activity improved somewhat in recent weeks. Mainland Europe has been relatively stable. In the Americas the US was generally positive, and Canada showed signs of recovery from last year," the company said.
First quarter sales at the company's insulated panels division grew 4% year-on-year and insulation board division recorded 7% year-on-year rise in sales.
Net debt at period end totaled EUR698 million, an increase of EUR234 million from last year end due to completion of the acquisition of Synthesia in March and seasonal investments in working capital.
Kingspan is slated to issue its results for the six months to June-end on August 24. Shares were up 4.2% on Friday at a price of EUR37.52 each.
Related Shares:
KGP.L