Insulation industry news from Global Insulation

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.

US: Owens Cornings’ net sales from its insulation business rose by 5% year-on-year to US$838m in the first half of 2017 from US$799m in the same period in 2016. However, its earnings before interest and taxation (EBIT) fell by 24% to US$34m from US$45m. The company offered no reason for its declining earnings but it did mention a ‘greater than expected’ start-up impact of a newly commissioned mineral wool plant.

Despite this the company now expects to deliver revenue growth of more than US$250m and EBIT of about US$185m. It said that the improved outlook was driven by successful pricing actions in the US residential insulation business and the benefit of its Pittsburgh Corning acquisition.

“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of US$401m and continues to generate strong operating cash flow,” said chairman and chief executive officer Mike Thaman. He also said the acquisition of Pittsburgh Corning and its Foamglas product line had expanded the geographic footprint and product portfolio of the company’s insulation business.

UK: SIG’s revenue grew by 8.1% to Euro1.6bn in the first half of 2017 due to favourable currency exchange rates and sales in Mainland Europe. Sales in Mainland Europe rose by 42% in the period boosted by recovery in the construction markets particularly in France.

Denmark: Rockwool’s net sales rose by 8% year-on-year to Euro543m in the first quarter of 2017 from Euro494m in the same period in 2016 due to growing insulation sales in Europe. The group also attributed extra working days in the period and favourable exchange rate swings. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 3.6% to Euro86m from Euro83m. The company’s insulation segment sales grew due to the market in both Western and Eastern Europe. Its earnings held up in North America due to sales growth, increased prices and better utilisation at a plant in the US.

Hungary: Masterplast’s sales revenue rose by 17% year-on-year to Euro18m for the first quarter of 2017. Sales in Hungary grew by 40% and the insulation producer saw sales rise in all export markets with the exception of the Ukraine, according to local press. Sales in Slovakia and the European Union grew by 37% and 4% respectively but sales fell by 8% in the Ukraine. Around 41% of its revenue came from sales of external wall insulation system parts. However, despite the company’s rising sales its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 8% to Euro0.61m from Euro0.73m due to higher transport costs, higher labour costs and falling price margins.

France: Saint-Gobain has reported sales growth in all main territories in the first quarter of 2017, led by Asia and its emerging markets. Net sales for its Interior Solutions division rose by 6.2% year-on-year to Euro1.71bn in the first quarter of 2017 from Euro1.61bn in the same period of 2016. This was supported by rising prices in a ‘strong cost inflation environment.’ Overall the group’s net sales rose by 7.6% to Euro9.14bn. Notable geographical trends included a recovery in France and a continued poor market in Brazil.

“The first quarter saw robust trading. The good momentum in sales volumes observed in 2016 continued at the start of the year in all business sectors and regions. France benefited from the recovery in new-build activity, while other Western European countries delivered further growth. North America and emerging markets had a good start to the year. The group continued to pursue its priorities, focusing particularly on sales prices amid a more inflationary backdrop,” said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.

US: Owens Corning’s net sales from insulation rose by 4% year-on-year to US$399m in the first quarter of 2017 from US$385m in the same period of 2016. However, its earnings before interest and taxation (EBIT) for insulation fell by 62% to US$5m from US$13m. The company said that the business benefitted from continued recovery in the US residential market. Overall across all business lines the company’s net sales and EBIT rose in the quarter.

“Owens Corning is off to a great start in 2017. The company capitalised on market growth and delivered an outstanding result in the quarter,” said chairman and chief executive officer Mike Thaman. “All three businesses are executing on our priorities, and we are well-positioned to achieve another year of strong performance.”