Shares in building materials group Kingspan closed over 5% lower in Dublin today after it gave a gloomy outlook for the construction sector over the next couple of years.
The company reported pre-tax profits of €224.2m for last year, an increase of 21% on 2006, as turnover grew by 27.5% to €1.86 billion.
But it warned that its performance this year was likely to be well down if current conditions in the construction market continued. Kingspan added that a significant slowdown in Irish house-building was likely to last until at least late 2009.
It said limited access to debt markets for investors and developers, along with dwindling consumer confidence, was leading to a fall-off in building activity.
Chief executive Gene Murtagh said the company was taking 'all reasonable measures' to respond to this, but believed growing demand for energy saving building systems would help it in the longer term.
Earnings per share were 23% higher at 110.5 cent and a 31.5% higher dividend of 25 cent will be paid.
Kingspan's insulated panels sales were up 33% to €763.6m, with particularly strong growth in central and eastern Europe. Volumes in Ireland grew 9%. The company said Irish sales were held up by the non-residential sector, particularly retail and distribution. Insulation board sales rose 17% to €284.2m.
Sales in the offsite and structural division were also 33% ahead, driven entirely by strength in the UK market. The Irish part of this business only broke even. Access floors sales increased by 32% to €197m.
Shares in the company closed 43 cent lower at €8.54 in Dublin this evening.
