Kingspan warns of tough H1 after slow start to year
BUILDING supplies company Kingspan struck a cautious tone on its first-half performance after a slow start to the year and said forecasting market conditions from July onwards was also difficult.
The No.1 producer of insulation in Britain, Ireland, Canada and Australia said on Thursday that a comparison of the first half this year against the first half of 2012 would be tough due to the slow start and the more seasonal nature of a business it bought in 2012.
Last year, the company posted operating profit of €52.7m in the six months to end-June.
The company, which flagged weak market conditions in the UK and the Netherlands, said that beyond the mid-year, the current economic backdrop made it hard to predict market conditions but it was confident for the rest of the year.
"A combination of growing order intake levels, improving acquisition benefits, and a more diversified geography should position the Group well for the second half," Kingspan said in a statement.
Other companies in the construction industry have also experienced slow starts to the year including Ireland's CRH , Switzerland-based cement maker Holcim and Germany's HeidelbergCement.
Shares in Kingspan, which have risen by around 25pc in the last twelve months, closed at €9.50 on Wednesday, valuing the company at €1.6bn.