Cavan, Republic of Ireland -- Kingspan Group plc, which sees itself as a leading international provider of low-energy building solutions, said 15 Nov that its turnover in the 9 months to 30 Sept was Euro 865 million, up 6 percent year on year. Third quarter sales rose strongly -- up 15 percent on Q3 2009, "following a pattern of particularly strong order intake in the second quarter," the company said.
The group's businesses in the UK has a solid performance, "given the challenging circumstances," Kingspan said. Trading in Mainland Europe continued to build upon the improvements earlier in the year.
In North America, "the construction environment remained subdued," but Kingspan's Insulated Panel activity continued to grow its position, the company said, adding that, predictably, office construction weakened further.#
The company's headquarters region, Ireland, "remains depressed" Kingspan said, but added that in Australia its businesses have grown significantly throughout the year.
By product segment, Insulated Panels performed particularly well in most regions in Q3, up 20 percent year on year. Combined sales in the UK, Ireland and Western Europe grew 16 percent in Q3, but the medium-term project pipeline remained broadly flat through the period.
In Central & Eastern Europe, panel sales rose 30 percent in Q3, and order intake remained encouraging, up 11 percent, said Kingspan.
Similarly in North America sales grew by 21 percent, and intake was up 10 percent in the period.
Kingspan said that in recent months, it has encountered resistance in passing through the sizeable steel and chemical cost increases from mid-year, resulting in pressure on margins. "This pressure is likely to prevail for the foreseeable future given the expected macro weakness through the turn of the year, which can also be expected to impact on volumes," the company added.
Insulation Boards performed well in the period, with sales growing by 21 percent year on year, and up 10 percent excluding the recent acquisition in Australia. Activity was particularly robust in the UK, noted the company, with growth in the key future markets of Mainland Europe.
As reported earlier, the Group is to acquire the European insulation activities of CRH for about Euro 120 million, in a move which bolsters Kingspan's position as the number one provider of non-fibrous insulation throughout Europe. It also establishes a much wider platform from which to continue growing market penetration into the future, Kingspan noted.