Building materials group Kingspan says that group turnover in the nine months to the end of September rose by 6% to €865m. In a trading statement, the company said that third quarter sales jumped 15% compared to same time last year.
Kingspan said its UK businesses was solid, given the challenging circumstances, while trading in mainland Europe continued to build upon the improvements earlier in the year.
It said that while the North American construction market remained subdued, its insulated panel activity continues to grow its position. Its Australian businesses grew strongly throughout the year, but Kingspan added markets in Ireland remained 'depressed'.
Last week the company announced that it was buying CRH's European insulation businesses for €120m. It says this deal will boost its position as the number one provider of nonfribrous insulation throughout Europe. The acquisition is expected to have no impact on earnings in 2011 while it will enhance earnings after that.
Kingspan said that the more positive sentiment evident around the middle of the year has eased back recently as various country's austerity programmes have been factored into 'more tame' forecasts for the year ahead.
'That broad cautionary sense has also crept into expectations for the construction environment in many of the group's markets,' the company said in today's statement.
While it is well positioned for significant growth in the long-term future, Kingspan says that its near-term outlook is to deliver a 2010 full year operating profit of between €62-€65m. This compares to €62.7m last year.
Kingspan shares closed down 0.9% to €5.97 in Dublin this evening.
