Kingscourt, Ireland – Sales at insulation products company Kingspan were down 5% in the first nine months of the year at EUR3.27bn.
Coronavirus, raw material prices hit Kingspan in Q3
‘Our raw material costs are on the rise at present and, with the customary lag anticipated, a challenging recovery effort is underway,’ the company said in a trading statement. 'Overall, our end markets are in treasonable shape bearing in mind the uncertain and evolving backdrop.'
Insulation panel sales were down by 6% in the first nine months, and 3% in the third quarter. Business was strongest in Germany and France, while it was softer in the UK. The company said that the US is solid, Canada weak, and there has been decent momentum in South America.
Insulation board sales were down 14% in the first nine months and 5% in the quarter. Sales in the UK and continental Europe were good in the third quarter, while business in the Middle East was described as challenging.
Trading profit is likely to be slightly ahead of 2019, said Kingspan. The company added that trading in the fourth quarter has been strong, helped by accelerated demand in the expectation of inflation-led price increases in the coming months.