Kingspan EBITDA drops 55%

24th Aug 2009 08:00

Insulation board maker Kingspan said EBITDA for the six months ended 30 June fell 55% as the group battled against tough market conditions.EBITDA fell to €50.7m while revenue for the six month period fell to €552.5mfrom €849.4m the year before. Operating profit fell to €30.3m from €90.1m while net debt increased to €230.8m €194.2m.Overall Insulated Panel volumes were down 34% amid the general downturn in non-residential development, the group said in a company statement. Insulation Boards saw a strong performance despite tough markets with business in Western Europe particularly good. Access Floor volumes came under pressure while Environmental & Renewables remained weak amid low newbuild residential activity in the UK.Commenting on trading conditions chief executive officer Gene Murtagh commented, "A combination of global recession and unprecedented credit restrictions delivered a general market contraction in the first half of 2009 not experienced in the lifetime of this business. Throughout the period and beforehand, Kingspan has responded quickly and decisively to reorder its cost base appropriately,"Murtagh added that solid progress has been made in the integration of the Metecno acquisition.No interim dividend has been recommended for 2009.