Falling demand in the construction market in Ireland and the UK caused Kingspan profit to slip for the first time in six years, the company said today.
Operating profit fell 21 per cent to €90.1 million in the first six months of 2008, a 16 per cent decline on a constant currency basis.
Turnover was also down, sliding 6.5 per cent to €849.4 million. However, when the foreign exchange effect was discounted, turnover actually rose 1.5 per cent.
Sales fell 13 per cent in the U.K. and by 30 percent in Ireland in the six months through June. Sales in North American increased 5 per cent.
The company cut back on staff in a bid to reduce costs during the six-month period and warned that earnings for the full year would also be down compared to 2007.
However, chief executive Gene Murtagh said the company was "robust" despite the current difficulties on the international market.
"The first half of 2008 has seen Kingspan deliver a comparatively robust operating performance against a difficult international backdrop where the headwinds of contracting markets, rising raw material costs, and unfavourable foreign exchange movements remain in place," he said.
"The rationale for high performance building solutions that reduce energy consumption and carbon emissions is now widely accepted. As evidenced by the recent acquisition of Metecno Inc. in the US, Kingspan continues to invest in the business, undertake cost initiatives and widen its geographical footprint to leave the group well-positioned for a rebound when the current cyclical weakness reverses."
Additional reporting: Bloomberg
