Kingspan shares rise 8% on results

Shares in Kingspan climbed 8 per cent yesterday after full-year results for 2002 met market expectations and the company outlined plans to reward shareholders with a special once-off dividend.

Pre-tax profits at the Cavan-based building materials firm fell by 13 per cent to €63.7 million last year, in line with previously signalled difficulties in global construction markets.

Company chairman and chief executive Mr Eugene Murtagh said Kingspan had achieved a "creditable performance" against an uncertain economic backdrop.

He attributed an 11 per cent drop in sales largely to a downturn in commercial construction in the US and the UK but said all of Kingspan's divisions were "capable of substantial growth".

Mr Murtagh said the company expected to learn the outcome of a US arbitration on its disappointing 2001 acquisition of flooring business, Tate, in May.

Kingspan is rumoured to be seeking redress of €80 million in connection with Tate, for which it paid $120 million (€109 million).

The company's raised-access floors business acted as a particular drag on overall performance last year as sales in the division dropped by 36 per cent to €160.7 million.

Insulation boards were more buoyant, with sales rising by 25 per cent to €123.2 million.

Mr Murtagh said Kingspan would be investing in five new insulated panel manufacturing plants over the next five years, pointing to Central Europe, Benelux and Australasia as locations ripe for expansion.

Kingspan shares closed up 12 cents at €1.67 as the market concentrated on the company's apparent resilience in a tough environment for the sector.