Kingscourt, Ireland - Insulation and insulated panels giant Kingspan has posted a modest increase in revenue in the first half of 2012, up 3 percent at Euro 747.4 million ($927.4 million). Profit was up 19 percent to Euro 52.7 million, while operating margin was 7 percent.
Kingspan said the first six months of the year were characterised by a relatively strong first quarter, which "flagged considerably" in the second quarter.
In the insulated panels division, Kingspan reported sales up 3 percent at Euro 361.1 million, while profit reached Euro 27.1 million, up 25 percent.
In insulation boards, sales were Euro 232.1 million, up 4 percent. Profit was up by 7 percent at Euro 15.5 million in the first half of the year, which the group said reflected "proportionately higher sales of Kooltherm somewhat offset by pricing pressure in PIR (polyisocyanaurate) board."
The group posted "robust" performances in both the insulated panels and insulation businesses in the UK where, despite a lacklustre backdrop, sales grew by 1 percent. North America also performed satisfactorily with Australasia again growing well, Kingspan said.
In contrast to these markets, Western Europe was affected by an unusually weak construction environment in the Netherlands, owing to weakness in the residential sector. Germany performed well, as did the core central European markets but sales declined in Russia and Turkey.
Kingspan also recently announced that it will acquire the businesses of Thyssenkrupp Construction in Europe and, separately, Rigidal Industries llc in the United Arab Emirates. Combined revenue in 2011 was about Euro 340 million, the company said.
"Kingspan is very pleased to report another period of progress for the group through a combination of organic growth and the successful integration of acquisitions. The trading environment across many of our geographies continues to be very uncertain which is having a moderating impact, albeit with Kingspan continuing to outperform the general markets in which we operate," commented Gene Murtagh, Kingspan ceo.
Looking ahead, Kingspan noted that it is likely that the remainder of the year will weaken further from that experienced in the second quarter. However, the company said it enters the second half with a positive orderbook overall.