Panel supplier blames spending cuts across Europe for slowdown in third quarter orders
Kingspan has reported a fall in new orders in the third quarter after a strong start to the year.
The manufacturer, best known for its non-fibrous insulated panels, blamed austerity measures by governments across Europe for a reduction in orders for the three months to 30 September.
By contrast strong orders in the second quarter helped push third quarter sales up 16% year on year.
Kingspan warned that ’sizeable’ mid-year increases in steel and chemical costs were impacting on margins.
Kingspan said full-year operating profit would be close to 2009’s figure of €62.7 (£53.44m). Group turnover for the 9 months to 30 September rose 6% to £737.25m (€865m).
The group gave more details on its acqusition of CRH’s insulated division for €120m (£102m) announced last week.
Kingspan said that the acqusition would not increase the group’s earnings until 2012. It said it would not require additional borrowing for the purchase and said the group would continue to be ’conservatively’ geared.