The stock market has reacted badly to Kingspan's full year results, with the share closing down nearly 10% at 3.90. A warning that the US economic downturn might hit the recently acquired Tate's business is thought to underpin the poorer sentiment.
The company today reported pre-tax profits of 67.5 million euros - an increase of 15% for the year ending December 31, 2000. Turnover increased by 24% to 662.6 million euro, while the group's operating profit was up 18% to 76.8 million euros.
In a statement, the Cavan-based Kingspan said it had made a 'satisfactory' start to 2001, but warned that the US economic downturn could hit growth at the Tate Global Corporation operations in the US.
Following the acquisition of Tate in January for $120 million, Kingspan is now the world leader in the raised access flooring market.
The group said that sales in Ireland continued at a high level and generated an increase of 22% over 1999's sales figures - reflecting the continued buoyancy in the Irish construction industry. Sales in the UK and Northern Ireland increased by 27% in value terms to 455.8 million, with strong growth across the group's full range of products.
Sales in Europe, including central and eastern Europe, increased by 12% to 89.5 million euros.
The group has proposed a final dividend of 2.27 cents, making a total dividend off 3.62 cents, up 45% on the previous year's figure.
