Kingspan sales up 8 per cent

Group sales at insulation specialist Kingspan rose 8 per cent to €473 million in the first four months of 2012.

In an interim statement released ahead of its agm in Dublin this morning, Kingspan said sales in mainland Europe rose 9 per cent during the period January to April while sales in the UK and US were up 2 per cent and 10 per cent respectively.

Overall, sales were up 5 per cent in constant currency terms.

The company said trading margin also grew during the four months, partly as a result of Kingspan's recent restructuring initiatives and a recovering of the slight lag in raw material inflation seen in the fourth quarter of 2011.

Kingspan said the year opened with more optimism regarding activity levels in some construction markets but that this had since dissipated somewhat.

"The UK market is solid generally, with overall volumes flat, reflecting the wide range of end uses for our products. We recorded contrasting performances in Mainland European markets. The market in Holland has been difficult, resulting in year on year volume declines in our business. Germany, in contrast, is buoyant as a market and Kingspan’s growth there is underpinned further by market penetration," it said.

The group said its North American business recorded volume decreases in the four-months in line. It added that its Australian division was performing well.

Kingspan said sales revenues at its insulated panels division rose by 5 per cent versus the same four-month period a year earlier. Overall order intake was described as solid, decreasing by 2 per cent against the period a year ago.

Overall, insulation boards sales were up 16 per cent at the end of April with margin also improving.

Environmental sales were slightly behind the same period a year earlier. Access floors sales revenues were also marginally lower.

Net debt at the end of April was approximately €185 million, an increase of €14.5 million on last year.

"Our performance in the year to date, together with a solid order book, is likely to deliver single digit sales growth in the first half combined with a steady improvement in overall trading margin," it said.

Kingspan will issue its half year financial report for the period ended June 30th 2012 on August 20th.