Kingspan energi centre

Building materials group Kingspan has reported pre-tax profits of €56.7m for the year to the end of December, a decrease of 17% from the €68.1m reported in 2008.

Over the year, turnover at the Co Cavan-based firm declined by 33 per cent from €1.125 billion from €1.672 million, in what the company called a “solid performance” despite “hostile economic conditions”.

Kingspan said its operating profits fell by 60% to €62.7m.

The group said no final divided in respect of 2009 would be paid but added that payments may resume in fiscal 2010.

"In 2009 we experienced a set of global challenges never encountered before by the business," said Kingspan chief executive Gene Murtagh.

"In the circumstances, the company delivered a robust and resilient performance having responded to the challenges by overhauling our cost structure and focusing on cash generation. Excellent progress has been made in debt reduction which positions the company with one of the strongest balance sheets in the industry," he added.

He said that while the year ahead will present continued challenges, "there is no tangible evidence of stability emerging with conditions becoming more predictable than in the recent past."

Insulation Boards total sales volumes were down 23 per cent. Insulated Panel sales volumes in the UK, Ireland and Western Europe were down 33 percent, while sales volumes in North America falling 23 per cent.

Central and Eastern Europe panel volumes were also weaker, down 25 per cent.

Access Floors sales volumes were down 31% globally, however the company said margins improved from 14 per cent to 17.5 per cent.
Kingspan said that across the Group, fixed cost reductions in the year of €50 million brings the total since peak to €66 million.

The company said that ‘excellent progress’ was made in debt reduction, with net debt at year-end of €164.3 million, down from €299.6 million.