Kingscourt, Ireland – Third quarter sales of insulated panels and boards divisions at Kingspan were down on 2018. The company blames a 'substantial reduction in order intake in the UK' and weakness in Germany.
Kingspan broke the news in a trading statement to the London Stock Exchange this morning.
Sales of insulated panes are up 9% in the first nine months of 2019 and 1% in the third quarter of the year, the company said. But it warned that 'the pace of sales activity has decreased significantly in key markets in recent months.' It added that UK orders are down by more than 15% in volume versus the same period in 2018.' Germany is weak but the rest of mainland Europe is stable, the company added.
Insulation board sales were down 2% in the third quarter. Here falling raw material prices offset larger volumes. Sales in Germany, the UK and Ireland fell in the quarter and offset growth in the US and Australia.
End markets are fragile and there is 'an uncertain global backdrop,' the company added. It has also noticed a 'deterioration in sentiments in some markets, notable the UK. This is likely influence sales activates in the first quarter of 2020 at least.
Looking at the first nine months of the year sales were €3.43bn. This is, up 8% on the same period in 2018. Underlying sales, which ignore currency effects and the effects of business acquisitions on the results were up 2% in first nine months. They were flat in the third quarter
Kingspan used the statement to confirm its purchase of Group Bacacier, an integrated metal profile and insulated panel distributor in France. No price was disclosed, but the business has sales of EUR 190m.