Insulation industry news from Global Insulation

Denmark: Rockwool’s sales revenue for its insulation business has been driven by sales in Western and Eastern Europe. Its sales rose by 7.6% year-on-year to Euro1.31bn in the first nine months of 2017 from Euro1.22bn in the same period in 2016. Its earnings before interest and taxation (EBIT) rose by 18% to Euro129m from Euro109m. Earnings growth was driven by sales growth, improved pricing quality and a better utilisation of its US plant. Overall group sales and earnings also rose.

Ireland: Kingspan Group’s sales of insulation board and panels have grown strongly so far in 2017. Its board sales grew by 16% year-on-year in the first nine months of 2017 and its panel sales grew by 10%. Overall, the group’s sales revenue rose by 19% to Euro2.69bn. It attributed the growth in revenue for its insulation products to passing on costs from rising input costs. Its French market was reported as notably positive, although the UK market was described as ‘indecisive’ around order placement for board sales. It added that its Kooltherm product continues to outgrow its other insulation materials.

France: Saint-Gobain has continued growing its sales across all businesses in the third quarter of 2017. Its overall sales grew by 4.1% year-on-year to Euro10.2bn in the quarter from Euro9.76bn in the same period in 2016. This trend extends to the year so far, with a rise of 4.3% to Euro30.6bn in the first nine months of 2017, from Euro29.3bn in the same period in 2016.

“The third quarter confirmed the upbeat trends seen in the first half, excluding the impact of the cyber-attack. All business sectors and regions advanced, including France. We continued to see a good price effect against a tougher basis for comparison, but not yet sufficient in all of the group’s businesses given the more inflationary raw material and energy cost environment,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group had signed 23 acquisitions since the beginning of the year, including the recently finalised Glava deal.

Sales from the group’s Interior Solutions division, which includes gypsum wallboard and insulation products, saw its saw increase by 3.6% to Euro5.11bn from Euro4.94bn. The group attributed the sales growth in this business to ‘healthy’ volume trends in Western Europe and in Asia and emerging countries. Trading in North America was reported as ‘stable’ but with a smaller pricing contribution in a more competitive environment. It added that pricing for the division lags behind rises in input costs such as a raw materials and energy.

US: Growth in insulation sales revenue and earnings have contributed to Owens Corning’s overall growth so far in 2017. Net sales from its insulation business grew by 10% year-on-year to US$1.41bn in the first nine months of 2017 from US$1.28bn in the same period in 2016. Its earnings before interest and taxation (EBIT) grew by 7% to US$98m. The group’s overall net sales rose by 11% to US$4.78bn.

“Owens Corning delivered another strong quarter, despite some isolated market challenges. We remain confident in our ability to finish the year with strong financial performance,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company was ‘particularly’ pleased with the contribution of the newly acquired Foamglas business within its insulation business.

In its insulation business, EBIT grew due to higher prices and sales volumes. US volume growth slowed in September 2017 but the company said the segment was experiencing a recovery so far in the fourth quarter of 2017.

Denmark: Rockwool’s sales have grown in the first half of 2017 due to sales of flat roof insulation in Eastern Europe and general building insulation in North America. Its net sales rose by 6.6% year-on-year to Euro1.12bn from Euro1.05bn.

"As expected, the sales price increases we're implementing are beginning to show,” said chief executive officer Jens Birgersson. “Pricing will continue to be a major focus going forward, and we see positive market developments in the second half of the year, including an increasing interest for fire safe stone wool products. With better visibility for the remainder of the year, we are also increasing our guidance for sales growth."

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.

France: Sales from Arkema’s High Performance Materials division, which includes insulation products, rose by 12.5% year-on-year to Euro1.97bn in the first half of 2017 from Euro1.75bn in the same period of 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.3% to Euro340m form Euro314m. The chemical producer mainly attributed the boost in sales to its acquisition of sealant producer Den Braven in late 2016. Overall the company also reported increases in sales and EBITDA.

US: Huntsman Corporation’s Polyurethane division has increased its sales revenue by 9% year-on-year to US$1.98bn in the first half of 2017 from US$1.81bn in the same period in 2016 due to raised prices. It increased its prices of methylene diphenyl diisocyanate (MDI) to counter higher raw material costs and to benefit from a ‘strong’ market. However, sales volumes of MDI decreased in the reporting period due to maintenance outages. This caused its divisional adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall in the second quarter of 2017 although it rose as a whole for the half year. Amongst other products the chemical manufacturer produces polyurethane, which is used by the insulation industry.

US: Stepan’s Polymer division sales volumes fell by 7% year-on-year in the second quarter of 2017. This was due to lower phthalic anhydride (PA) and global rigid polyol volumes, although it was partially offset by higher Specialty Polyol volumes. The division’s sales revenue rose by 8% to US$268m in the first half of 2017 from US$248m in the same period in 2016. However, its operating income fell by 20% to US42.7m from US$53.1m due to rising costs and falling volumes.

"The second quarter adjusted net income exceeded prior year as the company continued to benefit from our diversification strategy, increased productivity and improved margins within our Surfactants and Specialty businesses. Rising raw material costs and increased competitive pressure contributed to a disappointing quarter for our Polymer business. The global market for rigid polyols continues to be strong," said F Quinn Stepan, Jr, chairman, president and chief executive officer (CEO).

The company produces aromatic polyester polyols for use in rigid polyisocyanurate and polyurethane foams that are used in insulation and other products.

US: Lapolla Industries’ spray foam sales revenue increased by 21% year-on-year to US$41.7m in the first half of 2017 from US$34.4m in the same period in 2016. Overall its sales including its smaller coatings business rose by a similar amount and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to US$4.26m from US$3.98m. It attributed the result to increased uptake of spray foam insulation in the market.