Kingspan Group PLC Trading Update (2382W)
November 13 2017 - 2:00AM
UK Regulatory
TIDMKGP
RNS Number : 2382W
Kingspan Group PLC
13 November 2017
Kingspan Group Plc
Trading Update
13 November 2017
Kingspan Group plc, the global leader in high performance
insulation and building envelope solutions, today issues a Trading
Update, with trading information for the period to 30 September
2017.
Sales in the nine month period to 30 September were EUR2.69bn,
up 19% on the same period in the prior year (+21% pre currency).
Sales in the third quarter were up 17% (+20% pre currency).
Underlying sales, pre currency and acquisitions, were up 11% in the
year to date and were up 13% in the third quarter.
Insulated Panel sales in the first nine months increased by 16%
(+18% pre currency), and increased by 13% (+15% pre currency) in
the third quarter. Underlying sales were 12% ahead both year to
date and in the third quarter, owing significantly to the
pass-through of input related inflation. Mainland European sales
were solid in most markets and notably positive in France. In the
UK we have experienced a sense of near-term indecision around order
placement, however our future activity tracker remains modestly
ahead of prior year. North America sales were solid overall, and in
Latin America we have experienced very encouraging activity since
taking a position there in recent months.
Insulation Board sales in the first nine months were up 10%
(+13% pre currency) and were up by 16% in quarter three (+19% pre
currency). Underlying sales growth was 13% year to date and 19% in
the third quarter. Sales growth year on year reflected strong price
growth necessitated by raw material inflation. In addition
Kooltherm(R) volume continued to outgrow our other insulation
materials, and was particularly positive in the UK, Ireland,
Western Europe and the Nordics. The North America and Australasia
markets are still in a developmental phase for Kingspan as we are
still in the early days of generating demand for high performance
insulation in these markets.
Light & Air sales both year to date and in the third quarter
are strongly ahead reflecting year on year acquisition activity.
Underlying sales year to date grew by 4% and by 7% in the third
quarter. As we exit 2017 the annualised sales of this division will
be in the region of EUR220m.
Environmental sales in the first nine months were up 12% (+17%
pre currency) and were up 11% (+14% pre currency) in the third
quarter. A particular highlight was the ongoing growth in rainwater
harvesting in Australia. UK and Europe sales were solid overall,
and margins continue to progress upwards.
Access Floors sales in the first nine months increased by 2%
(+5% pre currency) and were up 4% (+9% pre currency) in the third
quarter. UK office activity is softening, as expected, with the US
office market remaining relatively flat. Datacentre activity across
the division was encouraging as was the continued growth in sales
of our broader product portfolio into that segment.
Net debt at the end of September 2016 was EUR479.8m. Net debt at
year end is forecast to be in the region of EUR400m.
On the back of significant input inflation in the third quarter,
and our associated price inflation, we anticipate this trend to
remain through the fourth quarter albeit less pronounced as
chemical cost increases reach their peak. In general our end
markets are relatively stable, notwithstanding some recent evidence
of a slowdown in UK commercial and industrial activity. Separately,
the Group's development pipeline is encouraging.
Assuming current exchange rates prevail and conscious that much
of the seasonally variable fourth quarter remains, we expect to
deliver full year trading profit growth of approximately 10% or c.
EUR375m.
For further information contact:
Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698000
Geoff Doherty, Chief Financial Officer Tel: +353 (0) 42 9698000
Douglas Keatinge, Murray Consultants Tel: +353 (0) 1 4980300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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