Kingspan has strong first half 2019

Kingscourt, Ireland — Kingspan, which makes insulation from PIR and PU, recorded sales of EUR 2.2 bn in the first half of 2019. This is higher by 12% than the same period in 2018.

Trading profit across the business rose 18% and hit EUR 230.4m in the first half of 2019.

Gene Murtagh, CEO said: 'We have delivered a record first half with revenue growth in all our business units and a strong trading profit performance. We continue to expand our global production footprint with new facilities under construction in the US, Brazil and Sweden. The near-term outlook is solid. But political uncertainty in the UK, weakness in sterling, and weaker German economy are amongst risks we are monitoring closely.'

The company's insulated panels business sales rose by 14% between the first half of 2018 and 2019. They reached EUR 1.4bn in the first half of 2019. This compares with EUR 1.3bn the first half 2018.

At the same time, trading profit in the division increased by 19%. It hit EUR 146.5m the first half of 2019. This compares with EUR 122.6m the 2018 period.

Business was strong in France and Spain. This because momentum in converting from traditional systems in France has continued. As Spain continues its wider recovery so too has our business, said the company. It added that the Synthesia business it bought in 2018 'has performed excellently, bolstered by significant manufacturing and raw material synergies.

Germany was weaker for the company, and Kingspan anticipates this will continue into the future.

Central Europe performed solidly, as did the Nordics. The acquisition of Balex in 2018 has integrated well and is operating fully to plan, the company said.

Despite worries over Brexit, volumes in the UK were only marginally down and the order pipeline looks encouraging.

Progress has been good in the Americas and a new plant in Modesto California is nearing completion. Plans are being finalised for a new 2021 facility in Pennsylvania and a new facility in Cambui Brazil will be operational by the fourth quarter this year, the company said.

The company's Insulation Boards business sales grew by 5% between the first half 2018 and 2019. They reached EUR 451m the first half of 2019. This compares with EUR 429m in the first half of 2018.

Trading profit in the division rose by 14%. It was EUR 60.4m the first half 2019. This compares with EUR 53.1m in the first half of 2018.

'As PIR board regained its competitiveness over the last 12 months, volumes have consistently taken share from traditional fibrous material,' said the company. This is particularly in Continental Europe. In the UK, first quarter volumes were strong, but this is expected to drop in the second half. Nordic region sales grew slightly despite an increasingly challenging economic environment in Sweden. In the Middle East, is becoming more focused on phenolic ducting.

Activity in North America improved over the same period last year. Sales of expanded polystyrene grew and phenolic boards performed better. In Australia the focus on conversion from PIR to phenolic boards has delivered an improvement in volume in recent times.