11th Nov 2013 11:26
LONDON (Alliance News) - Irish building products maker Kingspan Group PLC Monday said sales were up 14% in the third quarter, buoyed by acquisitions, although sales fell 2% excluding acquisitions as sales of insulation boards and environmental products dropped.
The maker of insulations panels and boards said sales in the first nine months of the year were up 13% at EUR1.32 billion, although they were down 3% excluding acquisitions.
The company bought Rigidal Industries LLC in the United Arab Emirates and ThyssenKrupp Construction in Europe in the second half of last year. The ThyssenKrupp buy, in particular, boosted its sales of insulation panels.
Sales of insulation panels were up 33% in the first nine months, sales of insulation boards fell 3%, while environmental sales were down 14%. It said the decline slowed to 8% in the third quarter, and the environmental unit should post improved profits in the full year thanks to cost cutting and the better sales performance.
"Whilst there is clear evidence of recovery in certain sectors of UK construction markets, and perhaps in pockets elsewhere, recovery in other markets is generally more tentative," the company said in a statement.
"In particular, there has been a slowdown in activity in the US in the third quarter although it is too early to call this as a trend."
Kingspan said it expected full-year trading profit to be up about 10% on the year. In its previous guidance, it had said it expected an improved second-half result.
Kingspan shares were up 2.1% at EUR13.22 in London Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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