Building materials group Kingspan has said its operating profits and earnings will be in line with current expectations and 'significantly ahead' of the previous year.
Also announced today was an industrial insulation joint venture with Belgium's Recticel, which makes industrial foam.
Recticel is to put its Belgian-based subsidiary RAC into the venture, while Kingspan will contribute its plant based in Glossop in England.
The venture, which will produce insulation for applications such as pipes and plates, is expected to make sales of €35m in 2006.
In Kingspan's trading statement earlier today the company said revenue had grown strongly throughout the year, while raw material prices and supplies had stabilised.
Kingspan said its net debt at the end of 2005 would be €180m, after it spent €140m on acquisitions. It said some of its UK acquisitions were aimed at benefiting from changes in construction methods and building regulations.
The company said that while conditions in the UK construction sector were weaker and economic growth was lower, it did not expect these factors to have a significant impact on its business. Ireland continues to perform well, while activity in central and eastern Europe improved in the final quarter.
Shares in Kingspan dropped 24 cent to €10.91 in Dublin this evening, having risen sharply recently on hopes that the company would lift its forecast.
