SIG expects profits of no less than £60m

13th Jan 2010 07:18

SIG said it has seen exceptionally challenging conditions and disruption to trading caused by extreme weather conditions in a number of countries in the final weeks of the year, but does not expect full year underlying pre-tax profits to be less than current analysts' consensus expectations of £60m.The scale of the decline varied by geography and market sector, with a number of the building products group's Mainland Europe countries of operation less heavily affected than the UK and Ireland. While trading patterns within individual countries and business streams remained inconsistent through to the year end, as the second half progressed there were slight indications in some areas of a slowing in the rate of decline, it added.Total sales for the year were c.£2,744m, a decrease of approximately £310m (10.1%) compared with 2008 (£3,054m). Like for like sales reduced by c.11.5% in Sterling and by c.15.6% in constant currency.'Macroeconomic conditions remain uncertain and, with the prospects for recovery in construction markets accordingly unclear in respect of both timing and degree, the outlook for 2010 remains challenging,' the group said.'As a result of the group's restructuring measures undertaken to improve long-term operational efficiency together with the reduction in its fixed cost base and its significantly strengthened balance sheet, SIG is in good shape to deal both with the likelihood of a number of its end markets continuing to weaken in the coming months and to take advantage of their subsequent later recovery and of any growth opportunities which may emerge.'