KGP20 Aug 2012 08:14
Looking Ahead
The macro backdrop in recent years has been variously described as challenging and uncertain. This is the environment we now operate in, and we remain focused on what we can influence, continuing to make progress in that context.
As outlined, after an encouraging start to the year markets moderated through the second quarter. Without looking too far ahead, it is likely that the Group's trading environment for the remainder of the year will weaken further from that experienced in the second quarter. That said, the Group enters the second half with a positive orderbook overall. In Insulated Panels the orderbook at the end of June 2012 was ahead of the same period last year in North America by +3%, in the UK and Western Europe by +13% and CEE by +22%. In Insulation Boards, the trend seen in the year to date of overall volume weakness relieved somewhat by a positive sales mix can be expected to continue in the near-term, although activity in the Netherlands is likely to ease further. Our Environmental division is likely to record more pronounced weakness in the second half, versus the same period last year, at which time sales to France were at a peak. Somewhat encouraging in the year to date were sales of Access Floors and, in the second half, performance could be modestly ahead of the same period last year.
Overall, the Group will continue to drive its conversion approach with the objective of increasing market penetration for higher performance insulation and building envelope solutions. Our focus will continue on iteratively rebuilding margin and returns on capital through greater efficiency, product specification, innovation and operating leverage, not alone in Kingspan's existing businesses, but in the recently acquired TK Construction businesses across Europe. The Group has a strong, well capitalised balance sheet and, overall, is well placed to progress in the years ahead.
Sign In
Follow the stocks
