Insulation industry news from Global Insulation

UK: SIG’s sales revenue for the first half of 2018 has remained stagnant due to poor weather earlier in 2018. Revenue in the UK and Ireland fell by 3.1% year-on-year in the period whilst in Mainland Europe grew by 2.9%.

The Sheffield headquartered building materials producer also said in a trading update that it had appointed Ernst & Young as its external auditor. Shareholders previously voted against a bid to reappoint of Deloitte following an overstatement of the company’s profits in 2016. The company has also appointed Alan Lovell and Cyrille Ragoucy as non-executive directors with effect from 1 August 2018.

Ireland: Kingspan Group’s revenue grew in 2017 due to strong European sales despite a ‘weakening’ UK market. Its revenue rose by 18% year-on-year to 3.67bn in 2017 from Euro3.12bn in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 9.3% to Euro442m from Euro404m. Sales of both insulation boards and panels grew.

“We have continued our globalisation strategy with several significant acquisitions, including establishing a market leading presence in Latin America. Our new Light & Air division is performing ahead of expectations and expanding the range of product solutions the business offers. The challenge of increased input costs has been effectively managed to minimise the impact on profit margins. Notwithstanding the weakening UK market our well diversified business is well placed for the longer term,” said Gene M Murtagh, the chief executive of Kingspan.

Ireland/US: Ireland’s Kingspan has invested US$10m to buy a minority stake in Invicara, US-based a provider of software for the construction industry. Invicara has developed products that integrate with Building Information Modelling (BIM) technology, allowing collaboration between partners on construction projects such as architects, engineers and contractors. Louise Foody, Kingspan's Director of Digital and Brand, and Mike Stenson, Head of Innovation at Kingspan, will also join Invicara’s board of directors.

"For manufacturers of building systems and solutions, digitalisation enabled by technologies like BIM is a game changer. At Kingspan, we aim to leverage digital technologies to further align our offerings with our customer's needs and more efficiently collaborate with owners, designers, and contractors at every stage of the building lifecycle," said Foody.

BIM Assure, the first product built on the Invicara platform allows owners to access, validate, and report on model data. The product is currently in use on projects in North America, Ireland, the UK, Australia and Singapore.

Poland/Spain: Kingspan Group plans to buy Spain’s Synthesia group and Poland’s Balex Metal. Although no exact figure has been released, Kingspan has agreed to spend Euro620m on ten acquisitions, including Synthesia and Balex, so far in 2017.

"These latest acquisitions mark a significant strategic step forward for Kingspan. They are a perfect fit for our existing businesses and geographic footprint, and in addition provide a technology platform that will complement our on-going innovation pipeline and the development of next generation insulation," said Gene Murtagh, chief executive officer (CEO) of Kingspan.

Kingspan’s acquisition of Synthesia includes its Huurre and Poliuretanos businesses that produce insulation products in Spain, Portugal and in Central and South America. The deal includes a technology platform for blended chemical systems similar to those used throughout the wider Kingspan Group. Synthesia is headquartered near Barcelona, with eight manufacturing facilities across Northern Spain and Panama and approximately 575 employees across all businesses. The acquisition agreement is conditional on regulatory clearance, and is expected to complete during the first quarter of 2018.

Kingspan has also agreed to acquire Balex Metal, a Polish insulation producer. The Balex acquisition is conditional on regulatory clearance, and is expected to complete towards the end of the first quarter of 2018.

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.

Ireland: Kingspan is considering making further acquisitions in South America. Chief executive Gene Murtagh said that the insulation producer may follow up investment in the origin after its purchase of a controlling stake in Colombia's Panelmet and a production plant in Mexico, according to the Irish Times newspaper. Murtagh added that the insulation producer is ‘always’ considering buying new companies but that ‘unreasonable’ sellers were holding up potential deals.

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.

Ireland: Kingspan Group’s sales rose by 24% year-on-year to Euro831m for the first three months of 2017, boosted by the acquisitions that the company made in 2016. By market the group reported good performance in the UK, US and Australia, recovery in Europe and poor performance in the Middle East and Turkey. It also noted that all markets have experienced raw material price inflation. Both sales of insulation board and panels grew in the period. The company commissioned a new insulation board plant in Melbourne in early April 2017.

Ireland: Kingspan says it has beaten its target of generating at least half its aggregate energy use from renewable resources by 2016. The Irish insulation producer’s aggregate renewable energy use was 57% of its total energy use in 2016, suggesting that the it is on track to hit its goal, set in 2011, of operating at Net Zero Energy (NZE) by 2020. Key drivers to reaching this goal have included saving energy through measures such as a cutting lighting and heat costs, genreating more renewable energy through solar, wind and biomass sources and buying more renewable energy where it can’t be produced on-site.

“In the five years since launching this initiative we have seen multiple benefits including reductions in costs, less reliance on fossil fuels and demonstrating the business case for our systems and solutions. Without more action from the corporate sector, greenhouse gas emissions will continue to rise and the impact of global warming will become a bigger threat for future generations,” said Gene Mutagh, the chief executive officer of Kingspan.

Ireland: Kingspan’s sales revenue has risen by 12% year-on-year to Euro3.11bn in 2016 from Euro2.77bn in 2015. Its profit after tax rose by 34% to Euro256m from Euro191m. It attributed the sales growth to ‘strong’ performance in the UK and a recovery in Western Europe. However it noted that its US market was subdued in the second half of the year.

“2016 was another record year for Kingspan. Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future. We are encouraged about the outlook for the first half of 2017, with the current order book solidly ahead of the same point last year,” said Gene Murtagh, chief executive of Kingspan.