Kingspan profits jump but outlook uncertain

22nd Aug 2011 08:14

Insulation board specialist, Kingspan, saw first half profits after tax leap 37%, but warned that the pace of growth was likely to ease as the year goes on.Profits after tax in the first half rose from €21.3m in 2010 to €29.2m in the first half of this year.The company said strong growth in its order book at the end of last year continued into 2011, as did better weather, which also helped.But Kingspan said the pace of growth eased in the second quarter and was likely to ease further in the second half of the year.Raw material inflation, and its recovery, was a prominent feature of the first half of 2011 with key inputs of both steel and chemicals rising sharply, it said,The firm said dealing with these rises was a "tough challenge" but the recovery of these costs was on track.Chief executive, Gene Murtagh, said strong organic growth had complemented the recent acquisition of CIE Insulation. "Kingspan continues to outperform both the market and the general macro environment with our range of high performance solutions although we remain very mindful in the period ahead of renewed global uncertainties and their possible impacts," he said.