Cavan, Ireland, July 12-- Kingspan Group Plc, Ireland's largest maker of flooring and insulation panels, said its first half results were "well ahead" of the year earlier period as demand rose and pressure on raw material costs eased.
Revenue growth was "strong" against a background of stable construction markets, with improvements to profitability, the Cavan-based company said today. Full-year earnings are set to exceed analysts' estimates, it said, without giving any details.
"The combination of good underlying growth coupled with the contribution from acquisitions provides a strong platform for continued good growth," Chief Executive Gene Murtagh said today in a statement.
Building insulation providers including Kingspan and U.K. rival SIG Plc are benefiting as governments tighten regulations on buildings, demanding better insulation to reduce energy consumption and carbon-dioxide emissions. Kingspan's products also help clients such as Cadbury Schweppes Plc control temperatures at sites where foodstuffs are made and stored.
Kingspan said recent acquisitions are trading "in line" with targets. The company on May 9 agreed to buy Advanced Thermal Composites Ltd. to expand in the U.K. In March, it acquired Century Homes, Ireland's No. 1 supplier of timber-frame houses, for a maximum 98 million euros ($119 million).
Central and eastern European markets started the year at a slower pace than expected, Kingspan said. Sales to those markets including Poland, Hungary and the Czech Republic accounted for 7 percent of 2004 revenue. The U.K. is the company's largest market, accounting for almost two-thirds of its business.
The shift to new accounting rules had little effect on its reported 2004 profit, Kingspan said in a separate statement today. Full-year net income was 78 million euros under International Financial Reporting Standards, compared with 69.97 million euros reported by the company in March.
More than 7,000 European companies this year will adopt the IFRS standard, designed to align rules across countries and enhance transparency.
