Cavan, Ireland - Insulation and building products group Kingspan said its revenue in the nine months to 30 Sept 2102 was Euro 1.16 billion, up 1.6 percent on the prior year.
But Kingspan noted that the pace of sales growth moderated through the third quarter, decreasing by 0.7 percent compared to the same period in 2011.
As highlighted previously, "sentiment in our end markets was relatively subdued in the first six months of the year," although the group nevertheless recorded solid progress.
In the three months since, sentiment has weakened further, "driven in particular by a deepening lack of confidence in Europe and with the US commercial construction market being in somewhat of a holding pattern," Kingspan said.
Australian construction markets are also slowing although Kingspan said it sales continue to grow reflecting improving levels of market penetration.
Overall, general building activity across a number of the group's markets has been easing, with some pockets of relative buoyancy including Central and Eastern Europe, most notably Germany.
In its insulated panels business, Kingspan said, revenue increased by 3 percent in the first nine months (in Q3 by 2 percent). In the UK and Western Europe, year to date order intake was flat but decreased by 7 percent in Q3.
North American business was relatively subdued and order intake is behind for the year to 30 Sept by 2 percent, although strongly ahead by 15 percent in Q3.
Order intake in Central/Eastern Europe was ahead of last year in the period to 30 Sept by 4 percent and also by 4 percent in Q3.
The early stage integration of the ThyssenKrupp Construction Group and Rigidal Industries llc acquisitions, as announced earlier in the year, is fully on track.
In insulation boards, Kingspan said revenue in the first nine months was up 3 percent (Q3 by 2 percent) compared with the same period last year. The group said divisional revenues continue to benefit from a strong Kooltherm business mix across all markets.
The UK market was solid overall with some volume weakness evident and the outlook for the near term trending similarly, while in the Netherlands it remains persistently weak with little evidence of any near term recovery.
The group expects to deliver a trading profit of approximately Euro 105 million, up 10 percent year on year, and in line with consensus.
Kingspan said it is difficult to fully counter persistent economic and construction weaknesses, which have the potential to become more pronounced in early 2013. But it feels the structural and global dimensions to Kingspan's business should go some way to offsetting this, as it has done in the past.
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