Kingspan Profits Down 20%, Amid US Takeover News

Irish building suppliers group Kingspan has said its pre-tax profits for the first six month of 2008 are down over 20%, on last year’s performance.

The group earned €83.9million in the first half of this year, compared to €108.1m during the same period in 2007.

Turnover dropped 6.5% to €849.4m. Share earnings fell 21%, with the interim dividend value of 8% remaining unchanged.

Group Chief Executive Gene Murtagh said, despite poor market conditions and rising material costs, activity remained "robust".

The firm said it expects these factors to remain a trading challenge, and predicted further decreases in performance for the second half of this year.

However, Kingspan’s business has remained buoyant in North America and strong in western and central Europe, in the face of construction slumps across the UK and Ireland.


Yesterday the group announced a takeover of a US-based pre-fabricated composite panel manufacturer Metecno

The deal was reportedly worth £60m.

The firm is the second largest manufacturer of composite sandwich panels in the US.

During the 12 months leading to June, the firm has amassed a turnover of around £74m.

Group boss Mr Murtagh said: "By combining Metecno with our existing businesses in Canada, Kingspan has developed a very powerful and influential position in the North American market."

Kingspan said the acquisition would be "mildly earnings-enhancing" for the rest of 2008.

Meanwhile, cement giant CRH has announced a 10% fall in pre-tax profits during the first half of this year, amid "difficult trading conditions and a weaker US dollar".

The firm’s profits dropped to €606 million.

Share earnings fell 8% to 85.5%, according to an interim report.

The firm had already predicted similar figures in its early July Interim Trading Statement.

However, there was some positive news, CRH reported a 4% growth in European operating profits of around €20m, bringing totals to €515m.

Chief Executive Liam O’Mahony said: "Following 15 years of consecutive growth and a record performance in 2007, more difficult trading conditions and a weaker US dollar will, as previously indicated, result in a lower outcome for 2008."

Full year performance is expected to replicate conditions previously experienced so far in 2008.

(PR)