Insulation industry news from Global Insulation
Recticel passes on rise in price of input chemicals
04 March 2022Belgium: Recticel’s insulation business has used price rises to compensate for a steep rise in the price of raw chemical input materials. The division’s sales grew by 57% year-on-year to Euro391m in 2021 from Euro249m in 2020. Its adjusted earnings before taxation, interest, depreciation and amortisation (EBTIDA) more than doubled to Euro62.4m from Euro27.5m. It said that its Insulation and Engineered Foams businesses performed well in a volatile environment. Chemical raw materials supply reportedly remain tight and prices are showing little signs of stabilisation. Transportation and labour costs are increasing at an “unprecedented” rate. However it added that energy cost inflation has a minor impact given the “very low energy intensity of our business.” Overall the group’s sales and adjusted EBITDA rose by 67.4% to Euro1.03bn and by 134% to Euro89.7m.
“We are happy with the very positive sales and profitability development in 2021, a year marked by deep changes in our company. Changes which were planned and announced, such as the acquisition and integration of FoamPartner and the divestment of the Bedding activities. Changes which came as a consequence of the unsolicited takeover bid by Greiner, such as the divestment of our newly created Engineered Foams business segment,” said chief executive officer Olivier Chapelle.
Owens Corning grows insulation sales on higher volumes and prices
18 February 2022US: Owens Corning grew its insulation sales revenue in 2021 through increased volumes and higher prices. Its insulation business sales grew by 22% year-on-year to US$3.18bn in 2021 from US$2.61bn in 2020. Its earnings before interest and taxation (EBIT) rose by 78% to US$446m from US$250m. It added that higher selling prices more than offset inflation and increased transportation costs. The group’s overall revenue rose by 20% year-on-year to US$8.50bn and its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 41% to US$1.90bn.
“2021 was a year of tremendous accomplishment and record results for Owens Corning. Our global teams continued to elevate their performance to support our customers and generate growth in our key products and geographies, outperforming the markets we serve,” said chair and chief executive officer Brian Chambers.
Kingspan holds off raw material inflation with price rises in 2021
18 February 2022Ireland: Kingspan says that it saw ‘dramatic’ price inflation from its key raw materials in 2021. To compensate it passed on around Euro700m in cost increases to the market. The group’s revenue grew by 42% year-on-year to Euro6.50bn in 2021 from Euro4.58bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42% to Euro893m from Euro630m. Turnover from the group’s insulated panels business represented 65% of total revenue at Euro4.23bn and its insulation boards business represented 18% at Euro1.18bn. The insulation producer noted particular positive markets in the Americas, France and the UK.
“The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results. Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement,” said Gene M Murtagh, the chief executive officer of Kingspan.
US: Revenue from Huntsman’s Polyurethane division rose by 35% year-on-year to US$1.39bn in 2021 from US$1.03bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 8% to US$218m from US$201m. The group said that price increases offset higher raw material and logistic costs. Overall group revenue and adjusted EBITDA increased by 40% to US$8.45bn and 107% to US$1.34bn respectively.
"We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business,” said chairman, president and chief executive officer Peter R Huntsman.
Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.
Residential markets drive Rockwool’s insulation sales in 2021
09 February 2022Denmark: Rockwool says that high construction and renovation activity in the residential sector mainly drove its insulation sales in 2021. Insulation business sales grew by 20% year-on-year to Euro2.29bn in 2021 from Euro1.91bn. Its earnings before interest and taxation (EBIT) rose by 17% to Euro275m from Euro236m. Strong growth was reported in Europe, solid sales in North America but some parts of China and elsewhere in Asia were negatively affected by coronavirus-related closures of some markets. The producer commented that its insulation sales increased ‘significantly’ in 2021 even compared to 2019 before the coronavirus pandemic started. However, it warned that “sales prices and productivity gains did not fully offset the accelerating inflation on production materials, energy and logistic costs.”
“The surprising speed of the 2021 economic rebound also brought challenges, including inventory and material shortages in some markets as well as logistics challenges that required creative solutions. Special thanks go to our customers for their patience and especially our people working in the factories and across the commercial, technical, procurement, and support teams, who worked together to reduce customer delays,” said chair Thomas Kähler and chief executive officer Jens Birgersson in a statement. Overall, group net sales grew by 19% to Euro3.09bn from Euro2.60bn. EBITDA increased by 15% to Euro602m from Euro522m.
Rockwool increases nine-month sales in 2021
25 November 2021Denmark: Rockwool’s nine-month sales rose by 18% year-on-year in 2021 to Euro2.25bn. Its earnings before interest, depreciation, taxation and amortisation (EBITDA) were Euro456m over the same period. The company said that strong demand for non-combustible insulation and our other stone wool products resulted in double-digit growth in all of its business areas in the third quarter of 2021.
Chief executive officer Jens Birgersson “With construction activity booming in many markets, we achieved double-digit sales growth in all business areas and good profitability despite soaring energy and input costs, a tight labour market and material shortages. We are working hard to meet customer demand and overall managing supply chain and logistics challenges well.” He added “Nevertheless, the high cost increases we are seeing on energy, production material and logistics are negatively affecting margins, necessitating additional and more rapid price increases, which are likely to continue in the coming months.”
Kingspan increases nine-month revenues and insulated panels and board sales in 2021
12 November 2021Ireland: Kingspan’s consolidated sales were Euro4.72bn in the first nine months of 2021, up by 22% year-on-year. Its insulated panel sales increased by 47% and its insulation boards sales increased by 51% over the same period. In the third quarter of 2021, the company’s sales rose by 50%, its insulated panels sales rose by 53% and its insulation boards sales rose by 78%.
The group said “Our backlog is strong, though it is reducing week-on-week as sales activity outpaces new order placement. Underlying panels order intake volume is down by 10% year-on-year in the third quarter of 2021. 2021 so far has been unusual and characterised by order placement earlier in the year than is typical, as customers sought to get ahead of on-going inflation and availability pressures. It is likely what we are experiencing now is a fallow period in order placement following that. Raw material prices have been somewhat stable in more recent weeks, albeit at record high levels and following a period of unparalleled increases. There are no signs yet of any meaningful raw materials deflation, although should that come the impact would be negative.” It added that its activity pipeline is ‘generally encouraging,’ saying “2021 has still to play out fully, with the seasonally important fourth quarter remaining and, accordingly, we expect to deliver a full year trading profit in the region of Euro750m, significantly ahead of the Euro508.2m recorded in 2020.”
SIG publishes 2021 third-quarter trading update
25 October 2021UK: SIG recorded revenue growth of 17% year-on-year in 2021. In the third quarter of 2019, growth was 9%. It achieved the acceleration despite material and truck driver shortages.
The company said that its UK distribution division was a key driver in its effective response to strategic and operational changes introduced since July 2020 designed to return the business to its previous market position and performance. Additionally, its France, UK exteriors and Poland businesses performed ‘very strongly.’ In all regions, the group passed on cost inflation to improve profitability quarter-on-quarter during the quarter. It forecast full-year underlying operating profit in 2021 ahead of market forecasts.
SIG increases sales and reduces loss in first half of 2021
21 September 2021UK: SIG’s first-half sales totalled Euro1.29bn in 2021, up by 32% year-on-year from Euro978m. It reduced its loss after tax by 85% to Euro9.45m from Euro62.7m. The company said that continued balance sheet strength enabled investment in its growth strategy. During the half, its net debt increased by 22% to Euro338m from Euro278m, in line with seasonal working capital increase expectations. It added that it has confidence in its ability to manage near-term supply challenges.
CEO Steve Francis said “The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated. The achievements to date have only been possible because of our teams’ energy, resilience and commitment in the face of the continually challenging circumstances, both with the effects of Covid-19 and the more recent industry-wide supply challenges.” He added “Trading in July and August has continued to be solid and we expect continued profit improvement through the second half of 2021, despite the on-going impact of material shortages and cost price inflation. As a result, providing the disruption from these headwinds does not worsen, we now anticipate full year underlying operating profit will be ahead of our prior expectations. The momentum behind our Return to Growth strategy is positioning the Group well, and we have growing confidence in our ability to take advantage of both strong near-term demand and healthy long-term fundamentals, including market tailwinds from sustainability initiatives.”
Rockwool increases sales and earnings in first half of 2021
23 August 2021Denmark: Rockwool recorded first-half consolidated sales of Euro1.45bn in 2021, up by 18% year-on-year from Euro1.23m in the first half of 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 31% to Euro299m from Euro229m. The group’s net profit was Euro152m, up by 50% from Euro101m. Its insulation segment’s sales were Euro1.07bn, up by 16% from Euro921m. The producer said that all markets and businesses contributed positively to the result.
Chief executive officer Jens Birgersson said, “Robust economic activity combined with productivity gains helped us achieve second-quarter and first-half sales and earnings above pre-pandemic levels. We secured double-digit growth across all major business areas and geographic regions, with both insulation and systems segments contributing substantially to the positive overall results. As we expect the high demand in key markets to continue, we have upgraded our sales and earnings forecast. We foresee input cost pressures to persist in the coming months as well as some industry risks involving material and manpower constraints that could impact building activity.”