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Kingspan profits to fall 27pc to €365m - Davy


Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Profits at Irish insulation maker Kingspan are expected to fall 27pc this year to €365m, according to Davy Stockbrokers.

It predicts that profits will increase 32pc next year to €483m, but the figure will still be 15pc below the pre-crisis estimate for 2021.

The Cavan-based company is one of the world's biggest operators in its sector.

Davy said Kingspan's decade-long growth trajectory has been "ruptured" by recent developments, but it was no longer a "hostage to fortune" to a small number of markets.

In March, Kingspan's chief executive Gene Murtagh described the coronavirus as a "monumental test" for the company. Kingspan employs more than 15,000 people at 159 locations globally. Last year, it generated revenue of €4.7bn and a €497.1m trading profit.

Kingspan said last week that its activity in Ireland had slumped 80pc, while global sales in April were down 35pc year-on-year - reflecting the full or partial closure of construction sites across the world.

"At this point, it is difficult to gauge the shape of the post-Covid-19 world," said Davy analyst Flor O'Donoghue.

"Our instinct is that there could be considerable longer-term structural effects arising from the pandemic that will impact all aspects of society and the economy."

He added: "More immediately, the shape of the recovery is debatable, but it is likely to be relatively restrained and uneven."

He said Kingspan's earnings by the end of 2021 are likely to be below those of 2019.

Irish Independent