Cavan, Ireland - Kingspan's interim results for the six months ended 30 June 2008 showed a slide in profits, but the leading European insulation group managed to lower its net debt during the period.
Revenue for Kingspan fell by 6.5 percent to Euro 849.4 million ($1228 million) down from Euro 908.4 million in 2007. Operating profit fell from Euro 114.2 million to Euro 90.1 million, a decrease of 21.1 percent, whilst earnings per share also fell by 21.4 percent to 41.4 cent per share. However net debt was reduced by 21.3 percent from Euro 246.7 million to Euro 194.2 million.
Kingspan said its UK and Ireland Insulated Panels units produced better results than expected with a decrease in sales of just 8 percent, Insulation Boards declined slightly, "reflecting a robust mainland European market but a weaker UK and Ireland residential environment." The company reported excellent progress in its Access Floors business area in both North America and Europe where office construction remained strong in the period.
"The first half of 2008 has seen Kingspan deliver a comparatively robust operating performance against a difficult international backdrop where the headwinds of contracting markets, rising raw materials costs, and unfavourable foreign exchange movements remain in place," said Gene Murtagh, chief executive officer.
"As evidenced by the recent acquisition of Metecno Inc. in the US, Kingspan continues to invest in the business, undertake cost initiatives and widen its geographical footprint to leave the group well-positioned for a rebound when the current cyclical weakness reverses."