(Alliance News) - Kingspan Group PLC on Monday said it expects to deliver its annual results in line with market forecasts following high-single-digit revenue growth in the first nine months of 2019.
The Irish building materials company reported revenue of EUR3.43 billion for the nine months to the end of September, up 8% on the prior year, despite sales slowing to 2% growth in the third quarter.
On an underlying basis - excluding acquisitions - sales were up 2% in the year-to-date and were flat in the third quarter.
By division, Insulated Panel sales increased by 9% in the first nine months of 2019 and increased by 1% in the third quarter alone. Kingspan highlighted that it has experienced a "substantial" reduction in order intake in the UK in the third quarter, reducing by more than 15% in volume versus the same period in 2018.
Meanwhile, in the Insulation Board unit sales in the nine months were up 3%, but were down by 2% in the third quarter. Kingspan said sales in the UK, Ireland and Germany slowed considerably in the third quarter, offsetting growth in the US and Australia. These trends are expected to continue over the coming months, the company noted.
In the Light & Air division, both nine-month and third-quarter sales increased by 12%, thanks to "strong" performance in the US.
Turning to Water & Energy, sales in this unit were up 3% over the nine months but down 3% in the third quarter alone, reflecting softness in the UK and reduced market activity in Australia.
The Data & Flooring division delivered sales growth of 14% in the nine months and 10% in the third quarter, as higher end floor finishes continue to advance.
Looking ahead, Kingscourt, Ireland-based Kingspan said its end markets are "fragile", reflecting an uncertain global macro backdrop. The company said it expects to deliver full-year trading profit of EUR490 million, representing growth of 10% versus 2018, and in line with consensus.
Kingspan shares were trading 2.4% lower in London on Monday morning at EUR47.44 each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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