Building materials group Kingspan says that trading in the first four months of 2011 was well ahead of the same time last year, though it noted the improvement in weather conditions this year compared to 2010.
In an interim management statement ahead of its AGM today, it said that group sales of €439m were 33% ahead of sales the same time last year.
The Co Cavan-based firm said that after adjusting for the impact of the purchase of the European insulation businesses of CRH, group sales were up 20% in the four month period.
Kingspan said it was seeing a gradual improvement in the UK residential construction market, an increase in refurbishment activity and good volumes in non-office related building activity.
It said that mainland European markets are also showing tentative signs of recovery with activity in Germany especially 'buoyant'. However, order patterns in Eastern Europe remain 'somewhat erratic'.
Kingspan said that Ireland, which represents 4% of its group sales, was flat overall year on year. The company's North American businesses recorded a good performance overall in a flat construction market, while Australia also recorded good sales growth so far this year.
The company said that raw material increases has been a key feature of the first four months. It added that more raw material pricing pressure will carry on into the second quarter. However, it said that steel costs are set to flatten.
'The momentum we have seen seen to date, together with the group's solid order book, is likely to deliver an operating outcome for the first half of 2011 favourable to that to a year earlier,' the statement said.
The company also said that Dermot Mulvihill is retiring from today, while Geoff Doherty, who joined the board in January, becomes the group's chief financial officer with immediate effect.
