Kingspan has said it expects to record a trading profit of €415m for the first half of its financial year, improving significantly on its result for the same period in 2021.
The building materials group said in a pre-close statement that profits for H1 2022 will be more than a quarter up (26.1%) on the first six months of last year when it made a profit of €329m.
The Cavan-based group reported, however, that it has seen the mood in most of its end markets "deteriorate" over the past two months, with order volumes declining "significantly" in May and June year-on-year, although orders remain ahead of the same two-month span in 2019.
"Our global backlog of orders on hand in Insulated Panels is down 2% in volume at the end of May having been 19% ahead at the end of March," Kingspan said.
"Kingspan is positioned strongly overall for medium term and beyond given the global focus on energy efficiency, our high performance product suite, our distinctive Planet Passionate agenda and diversity of our end markets."
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The update comes following reports of slipping sentiment in the construction sector, with the rate of decline in new orders accelerating last month, according to BNP Paribas Real Estate Ireland, and confidence falling for the second consecutive month.
Close to three-quarters of respondents to the company's monthly construction purchasing managers' index (PMI) reported increased costs, with the price of copper, fuel and oil the most widely reported to have risen and some firms indicating the war in Ukraine was to blame.
Inflation hit a 38-month high of 7.8% last month, and it is expected that it could add €51m to the cost of the over-budget National Children's Hospital.
During its first quarter, Kingspan saw sales increase 47% year-on-year to €1.9bn amid the early signs of growing inflation's effect on demand. The company this month committed to building a €200m technology campus in Ukraine following its exit from the Russian market.
Photo: (l-r) Kingspan founder Eugene Murtagh with CFO Geoff Doherty at the Kingspan 2018 AGM at the Herbert Park Hotel, Ballsbridge in Dublin. (Pic: Leah Farrell/RollingNews.ie)
