Building materials group Kingspan says that overall trading has been more steady over recent months and it expects its operating profits for the year will be about €60m.
In an interim management statement, the Co Cavan-based firm said that with the exception of Western Europe, construction markets remain under 'significant pressure'. It added that the non-residential sectors in Central and Eastern Europe and North America have both noticeably contracted in recent months.
It warned that these markets are not expected to 'bottom out' for some time yet.
Kingspan says that group revenues in the third quarter were down 28% on the previous year, a slight improvement on the year to date figure where is down 29%. Third quarter sales are actually 5% up on sales in the second quarter.
The company, which owns timber frame maker Kingspan Century, said that its insulated panels businesses are heading towards some semblance of stability at present, although it added that low rise commercial construction remains very weak globally.
It said its insulation boards performance has been supported by the bottoming out of new housing in Ireland, some improvement in UK new home construction and robust refurbishment.
However, its access floors division is seeing an evident decline in office construction and Kingspan warned that this is set to weaken further in the year ahead. It said the slight pickup in the environmental and renewables sector would be seasonally expected while the sector is also benefiting from the 'mild' recovery in the UK new home building market.
The company said that cash generation has been 'exceptionally strong' during the year, and net debt at the end of October was about €190m, down about €100m during the year.
Looking ahead, Kingspan said that it is anticipates the building environment will remain challenging next year.
In August, Kingspan said that its revenue for the first six months of the year fell by 35% to €552m. Pre-tax profits dropped 70%, from €83.9m to €25m, but the results were better than analysts had expected.
Kingspan shares closed up 23 cent at €5.62 in Dublin this afternoon, a gain of more than 4%.
