Insulation industry news from Global Insulation
Kingspan considering further acquisition in South America
22 August 2017Ireland: Kingspan is considering making further acquisitions in South America. Chief executive Gene Murtagh said that the insulation producer may follow up investment in the origin after its purchase of a controlling stake in Colombia's Panelmet and a production plant in Mexico, according to the Irish Times newspaper. Murtagh added that the insulation producer is ‘always’ considering buying new companies but that ‘unreasonable’ sellers were holding up potential deals.
Ireland: Sales in insulated panels have driven increases in sales revenue and earnings at Kingspan. Its revenue rose by 19% year-on-year to Euro1.75bn in the first half of 2017 from Euro1.47bn in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to Euro209m from Euro197m. It attributed its growth to increasing demand for energy efficiency in Western Europe.
“The first six months of 2017 were strong for Kingspan,” said Gene Murtagh, chief executive of Kingspan. “We expect end market activity to be broadly positive for the remainder of the year and at current exchange rates to deliver a full-year result at least in line with consensus. While margins contracted somewhat, we anticipate further recovery of input increases in the second half. Our balance sheet is strong and ready to support our development agenda as the opportunities unfold.”
By region the group says it performed well in Western Europe, including the UK, as well as the US, Scandinavia and Australia. However, it reported problems in Central Europe and the Middle East.
Ireland: Kingspan Group’s sales rose by 24% year-on-year to Euro831m for the first three months of 2017, boosted by the acquisitions that the company made in 2016. By market the group reported good performance in the UK, US and Australia, recovery in Europe and poor performance in the Middle East and Turkey. It also noted that all markets have experienced raw material price inflation. Both sales of insulation board and panels grew in the period. The company commissioned a new insulation board plant in Melbourne in early April 2017.
Kingspan beats Net Zero Energy targets
04 April 2017Ireland: Kingspan says it has beaten its target of generating at least half its aggregate energy use from renewable resources by 2016. The Irish insulation producer’s aggregate renewable energy use was 57% of its total energy use in 2016, suggesting that the it is on track to hit its goal, set in 2011, of operating at Net Zero Energy (NZE) by 2020. Key drivers to reaching this goal have included saving energy through measures such as a cutting lighting and heat costs, genreating more renewable energy through solar, wind and biomass sources and buying more renewable energy where it can’t be produced on-site.
“In the five years since launching this initiative we have seen multiple benefits including reductions in costs, less reliance on fossil fuels and demonstrating the business case for our systems and solutions. Without more action from the corporate sector, greenhouse gas emissions will continue to rise and the impact of global warming will become a bigger threat for future generations,” said Gene Mutagh, the chief executive officer of Kingspan.
Kingspan sales rise in 2016 led by performance in UK
17 February 2017Ireland: Kingspan’s sales revenue has risen by 12% year-on-year to Euro3.11bn in 2016 from Euro2.77bn in 2015. Its profit after tax rose by 34% to Euro256m from Euro191m. It attributed the sales growth to ‘strong’ performance in the UK and a recovery in Western Europe. However it noted that its US market was subdued in the second half of the year.
“2016 was another record year for Kingspan. Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future. We are encouraged about the outlook for the first half of 2017, with the current order book solidly ahead of the same point last year,” said Gene Murtagh, chief executive of Kingspan.
TechnoNicol prepares Superglass for US and UK expansion
06 December 2016UK: TechnoNicol International plants to use Stirling-based Superglass to launch an expansion programme in the US and to develop its market in the UK and Ireland. TechnoNicol has created a new division at the company it purchased in July 2016 to achieve this aim and has made senior appointments to support it. The company aims to establish a ‘significant’ market share in North America over the next five years.
Ken Munro, Superglass’s chief executive officer, has become chief executive officer of TechnoNicol (UK, Ireland and USA). In this newly created role, Munro will have responsibility for the management and coordination of TechnoNicol’s presence in these regions and will continue to lead and develop the Superglass business as it is incorporated into this expanded structure.
Munro will also have responsibility for the global development of the Superglass brand as it begins to play a part in TechnoNicol’s overall insulation products strategy. As further businesses are developed, both organically and by acquisition, they will be integrated into this unified regional structure, with new jobs likely to be created in Stirling as the regional headquarters takes shape.
Stuart Rowell, who is currently Group Business Development Director at Superglass, and Girts Dikelsons, currently Regional Director TechnoNicol (UK and USA), will be responsible for sales and marketing activity across all product lines in the new region and are appointed as Regional Sales Director (Insulation Solutions) and Regional Sales Director (Bitumen Membrane Solutions) respectively.
Theresa McLean, Superglass’s Chief Financial Officer, has been appointed as chief financial officer of TechnoNicol (UK, Ireland and USA) and Mark Atherton, Operations Director at Superglass, becomes Chief Production Officer and Head of Operations for the newly expanded regional business. Rowell, Dikelsons, McLean, and Atherton will all report directly to Ken Munro.
Kingspan sales rise by 13% to Euro2.27bn so far in 2016
14 November 2016Ireland: Kingspan’s sales have risen by 13% year-on-year to Euro2.27bn for the first nine months of 2016 from Euro2bn in the same period in 2015. Sales by its insulated panels division rose by 17% driven by good markets in the UK, France and Benelux, although slowdowns were reported in Germany and the US. Sales by its insulation board division rose by 6% with positive performance noted in the UK, Ireland, Scandinavia and the US. The insulation producer noted in its interim trading report that the weakening Pound Sterling against the Euro was negatively impacting its Sterling denominated earnings.
Ireland: Kingspan has reported that its group sales rose by 25% year-on-year to Euro903m for the first four months of 2016. It also noted in an interim management statement that order placement in the non-residential segments in the UK had eased ahead of the referendum on European Union (EU) membership scheduled for late June 2016. Insulated panel sales rose by 37% in the period. Insulated board sales rose by 11% driven by strong UK sales and supported by Europe and the US.
Chief executive Gene Murtagh also said at the company’s annual general meeting on 5 May 2016 that the insulation producer had made an investment in a facility selling duct insulation in Iran. The unit is expected to be in production later in 2016 supported by the company‘s UAE business, according to the Irish Independent.
Unilin buys insulation boards producer Xtratherm
09 December 2015Ireland: Belgian laminate floors producer Unilin has announced the acquisition of Irish insulation boards manufacturer Xtratherm. The acquisition will make Unilin an important player in the growing market of insulation materials. Xtratherm is also active in Belgium. The company inaugurated a new plant in the summer of 2015 for insulation boards in Feluy, specifically for the European continent.
Kingspan forecasts nearly 70% profit growth in 2015
11 November 2015Ireland: Kingspan has delivered a significantly better-than-expected full-year forecast, suggesting that its 2015 profits could increase by 68% to Euro250m, despite global economic confidence wavering. Insulated panels should show 53% revenue growth to Euro1.7bn in 2015.
Kingspan has reported a 44% year-on-year rise to Euro2bn in sales for the first nine months of 2015. The third quarter was particularly strong, with a 54% sales rise noted, which was boosted by the contribution of recent acquisitions. Sales in the UK, mainland Europe and the Americas, Kingspan's three main regional markets, soared by 54% in the first nine months of 2015. This performance was boosted by a 'solid' showing in the UK, 'steady' sales in Europe and strong growth in North America, particularly in the US.