Kingspan sales growth slows in third quarter

Building systems and insulation products giant Kingspan plc has reported a slowing of orders in the third quarter and said the positive sentiment of mid-2010 was easing back in the face of government austerity programmes.

In a trading statement, the Ireland-based company saw its group turnover rise 15% to €865m from a year ago, with the performance of its UK businesses “solid given the challenging circumstances”.

The insulation board division, which includes the group’s engineered timber systems businesses (comprising Potton, Kingspan TEK and the former Century and Pace Timber Systems operations), saw sales grow 21% year-on-year, with activity robust in the UK.

“Looking ahead, the more positive sentiment evident around mid-year has eased back recently as the many individual national austerity programmes become factored into more tame macro forecasts for the year ahead,” the company said.

“That broad cautionary sense has also crept into expectations for the construction environment in many of the group’s markets.”

Kingspan’s year-to-date performance, coupled with the current order book, is likely to deliver 2010 full-year operating profits of about €62-65m (2009: €62.7m).