Kingspan reports in line with forecasts

Revenues at Kingspan, the manufacturer of high performance insulation and building envelopes, rose by 7 per cent in the third quarter of the year, as it indicated to the market that it is on target to deliver full-year trading profit of €144 million for the full year.

“The relative optimism that prevailed earlier in the year appears to have waned in recent months, particularly in Europe. Whilst our business continues to perform solidly, we nonetheless are mindful of what are currently more tempered 2015 economic forecasts, and remain focused on driving the Kingspan proposition, whatever the macro climate,” the company said.

Insulated panels revenue increased by by 8 per cent in the third quarter and by 9 per cent in the first nine months. The UK continued to perform well with encouraging activity across most building segments. However after a “ sluggish second quarter sales performance, mainland Europe remained weak through the third quarter, “reflecting somewhat of an abatement in German market activity”. Sales growth in North America improved in the third quarter, and activity remained strong in Australasia.

Revenues in insulation boards rose by 6 per cent in Q3 and by 3 per cent in the first nine months. Environmental revenue in Q3 was up by 3 per cent, and by 1 per cent in the first nine months, “continuing on the path of relative stabilisation seen earlier in the year”.

Continuing momentum in UK office construction activity saw revenue in access floors jump by 11 per cent in Q3, but it is 4 per cent behind in the first nine months.

Looking to the full year, Kingspan expects to deliver a full-year trading profit in the region of € 144m , up by 17 per cent on 2013.