Kingspan shares rise 4pc as sales grow to €439m
Shares in Cavan-based insulation maker Kingspan jumped nearly 4pc yesterday after it said that group sales in the first four months of the year rose 33pc year-on-year to €439m.
Excluding its recently finalised acquisition of CRH's insulation business in Europe, sales were 20pc higher, with over half that figure accounted for by volume growth and the remainder by positive currency swings and higher pricing.
It added that continued momentum should result in a favourable first-half performance. Davy Stockbrokers analyst Flor O'Donoghue said the revenue generation in the first four months was ahead of his expectations. He's forecasting a 23pc rise in revenue for the full year.
A small element of Kingspan's revenue will be boosted from the latest government plans to create 2,000 jobs by retrofitting insulation on Irish homes. Speaking after Kingspan's agm in Dublin yesterday, chief executive Gene Murtagh said that of every €10,000 spent retrofitting an Irish home,up to €3,000 accrues to Kingspan.
Kingspan is also vying to recoup millions of euro it has already set aside to replace domestic oil and water tanks manufactured with polyethylene sourced from a unit of Austria-headquartered Borealis. A high court case between the two companies commenced in London this week. Kingspan is claiming product liability against Borealis. The Irish company is thought to be seeking damages of at least €25m.
Mr Murtagh also said that the firm would have to force through price rises as the cost of raw materials -- particularly chemicals -- continues to rise.