Building materials group Kingspan has reported pre-tax profits of €68m for last year, a drop of almost 70% from the €224m reported in 2007.
The pre-tax figure was affected by exceptional charges of €75m, linked mainly to the costs of restructuring and a writedown in the value of its off-site business. Operating profits fell 34% to €157m.
Turnover fell by just over 10% to €1,673m and adjusted earnings per share fell by 31% to 76 cent. A 68% lower dividend of eight cent for the year will be paid.
Kingspan said there was a 13% fall in sales of its insulated panels and insulation boards in the UK and Ireland, though there was growth in the rest of Europe. Kingspan also said its US insulated panels business had performed strongly.
Chief executive Gene Murtagh said 2009 would present greater challenges and the timing of an economic recovery remained uncertain. The company has cut costs by €35m, including staff numbers and capital investment.
A breakdown showed that insulated panel sales fell 5% to €724m, with Irish sales falling 28% as the housing slump worsened.
Insulation board sales dropped 12% to €250m, with a 19% fall in Ireland. Kingspan described this a 'relatively sound' helped by moves by homeowners to make their properties more energy efficient.
Turnover in the off-site and structural division fell 29% to €233m. Access floors turnover edged up 1% to €199m, helped by strong office construction activity in North America.
In the environmental and renewable division, sales fell 9% to €266.7m, but sales of solar water systems jumped by 66%.
Kingspan shares closed nine cent lower at €2.12 in Dublin this evening - down 4%.
