Building supplies group Kingspan said trading in the first four months of 2009 was "predictably tough" as customers continued to be reluctant to commit to new construction projects, but said the pace of deline may slow.
The company is predicting that there will be some improvement in operating performance during the summer months, although it said the usual mid-year seasonal upswing was likely to be "less evident" than in the past.
"The breadth of markets within which the group operates are showing varying levels of short and medium term activity, but there is now a general sense that the pace of deterioration has eased in recent months," Kingspan said in a statement.
"While the economic environment is widely forecasted to continue stabilising, the group is likely to experience further contraction in the near term, although at a reduced rate to that experienced to date."
The firm said sales fell 34 per cent to €350 million compared to the same four-month period last year. This figure rose to 39 per cent when acquisitions were excluded.
However, the decline was partly offset by the trend in the residential refurbishment market towards improving thermal standards, the firm said in a trading statement.
The Irish and UK markets have been hit worst by the weakeness in sales, while the rest of western Europe turned in a more robust performance.
The company predicted Central and Eastern Europe markets, which began the year down on 2008, could prove steadier in the coming months.
In North America, meanwhile, sales were boosted by acquisitions in 2008.