Irish construction products group posts 66% fall in half-year operating profit
Irish building products group Kingspan has reported a 66% slump in operating profit for the six months to the end of June.
Chief executive Gene Murtagh said the combination of global recession and unprecedented credit restrictions had led to a contraction 鈥渘ot experienced in the lifetime of this business鈥�.
Operating profit was 鈧�30.3m (拢26.3m) in the period to 30 June, down from 鈧�90.1m (拢78.2m) in the first six months of 2008. Revenue plunged 35% to 鈧�552.5m (拢479.5m), compared with 鈧�849.4m (拢737.2m) last year.
Sales in Ireland dropped by 67% while insulated panels, which account for 51% of the group's turnover, saw a 32% reduction in sales to 鈧�284m.
In a statement to the stock market, the firm said the impact of the recession in Ireland 鈥渞anks as the worst in Western Europe鈥� and that recovery for the country was 鈥渟ome years away鈥�.
Murtagh said: 鈥淭he focus for now continues to be on cash generation and making further progress on debt reduction ensuring the group has the balance sheet strength to consider opportunities which will present themselves beyond the global contraction.鈥�
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