Insulation industry news from Global Insulation

US: The Federal Trade Commission (FTC) has approved final amendments to its R-Value rule for domestic insulation products following a two-year review period. The changes are intended to reduce the regulation’s burden, clarify its requirements, and make it easier for the FTC to take action against deceptive R-value claims for non-insulation products.

The R-value rule originally came into effect in 1979. It requires home insulation manufacturers, professional installers, new home sellers, and retailers to provide R-value information, based on the results of standard tests, to help inform consumers. An insulation product’s ‘R-value’ represents the product’s ability to restrict heat flow and thus reduce energy costs.

Belgium: Recticel’s sales for its insulation business has remained stable year-on-year at Euro202m in the first nine months of 2018. The polyurethane foam producer’s insulation sector sales fell year-on-year in the third quarter of 2018 due to ‘strong’ volumes combined with falling prices and methylene diphenyl diisocyanate (MDI) input prices. Overall sales at the company have risen slightly so far in 2018.

US: The Reflective Insulation Manufacturers Association International (RIMA-I) has recognised the service of four directors who will retire from its board at the end of 2018. Peter Highfill of LL Flex, Mike Boulding of Pro-Echo Marketing, Veronica Ataya of Celplast Metallized Products and Lynn Walters of Kemper System America were each presented with plaques by president Doug Kinninger at the association’s bi-annual membership meeting that took place in Washington, DC in late October 2018.

France: Saint-Gobain’s Interior Solutions division’s net sales grew by 4.2% year-on-year to Euro5.33bn in the first nine months of 2018 from Euro5.11bn in the same period in 2017. The group said that division performance in the third quarter of 2018 was driven by pricing. Western Europe progressed slightly despite lower volumes in the UK. In North America, the acceleration in price increases in the quarter reduced sales volumes. Asia and emerging countries reported good growth. Overall, the group’s sales rose by 1.8% to Euro31.1bn from Euro30.6bn.

“Saint-Gobain continues along its growth trajectory despite a tough comparison basis in the third quarter of 2017. Our focus on increasing prices – critical in an inflationary environment – continues to pay off. The industrial issues that had weighed on our profitability in the first half of the year are largely behind us,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain.

US: Weaker market conditions have reduced Owens Corning’s expected growth in the third quarter of 2018. The building materials company’s net sales rose by 11% year-on-year to US$5.33bn in the first nine months of 2018 from US$4.78bn in the same period in 2017. Its earnings before interest and tax (EBIT) increased by 1.5% to US$596m from US$587m. For its insulation business the company said that it had reduced its expected EBIT growth for the year due to weaker market expectations across different regions and products.

“Weaker than expected market conditions across all three businesses, which impacted third-quarter results, are expected to continue during the fourth-quarter. As a result, we have lowered our 2018 outlook and now expect adjusted EBIT to be in line with last year,” said chairman and chief executive officer (CEO) Mike Thaman.