Insulation and building materials manufacturer Kingspan said it expects to deliver a full year trading profit of about €750m, significantly ahead of the €508.2m recorded in 2020.
In a trading update, Kingspan said that that sales in the nine month period to the end of September jumped by 44% to €4.72 billion, with sales growth of 50% in the third quarter of the year.
Kingspan said its backlog is strong, but added that it is reducing on a weekly basis as sales activity outpaces new order placement.
The company said that 2021 so far has been "unusual" and characterised by order placement earlier in the year than is typical as customers sought to get ahead of ongoing inflation and availability pressures.
"It is likely what we are experiencing now is a fallow period in order placement following that," it said.
"Raw material prices have been somewhat stable in more recent weeks, albeit at record high levels and following a period of unparalleled increases. There are no signs yet of any meaningful raw materials deflation although should that come the impact would be negative," it added.
In today's trading update, Kingspan said that sales at its Insulated Panels division jumped by 47% in the first nine months of 2021 and by 53% in the third quarter.
But the Co Cavan-based firm noted that raw material inflation has been "extraordinary", with the associated recovery and the top line boosted further by buoyant volume growth overall year to date.
It also said that order intake in August and September was lower than in the same two month period last year and this trend has continued in the weeks since.
Kingspan said that sales at its Insulation Boards division in the first nine months of the year were up 51% and up 78% in the third quarter.
Sales volumes overall were in line with the third quarter of 2020 with the top line reflecting mainly the higher cost of raw materials year on year, it said.
It added that sales in Central and Eastern Europe, the Nordics and North America were particular highlights in the third quarter although all key markets performed well.
"Recent investments, such as our Kooltherm line in Sweden have been key in driving structural adoption to high performance insulation with further developments to come globally in 2022 and 2023. The Logstor acquisition, which completed in June, is integrating fully to plan," it added.
Meanwhile, sales at Kingspan's Light and Air division in the first nine months were up 28% in the year to date and by 12% in the third quarter.
It noted that market activity both in Europe and North America has been more subdued than in other categories.
"The division has prioritised the integration of acquisitions made in the current and prior year and achieving category scale. 2021 is shaping up to be a further year of progress in that context," Kingspan added.
It also said that sales at its Data & Flooring division in the first nine months of 2021 were up 22% and up 21% in the third quarter. It noted that data centre demand globally is robust, offsetting a weaker office market.
And sales in its Water & Energy division rose by 32% in the first nine months of the year, while they were up 24% in the third quarter. Its waste water and rainwater harvesting categories continue to perform well, the company said.
