Insulation industry news from Global Insulation

UK: Superglass Holdings reported that its revenue fell by 25% year-on-year to Euro29m in its financial year that ended on 31 August 2013. In the UK-based mineral wool producer's preliminary results statement, chief executive Alex McLeod conceded that the company had faced 'extremely challenging trading conditions'.

"The transition from CERT to ECO/Green Deal has caused a major gap in activity within the retrofit market for both loft and cavity insulation. Combined with abnormally low levels of house-building activity in the UK by historical standards of new unit construction despite recent early signs of recovery, the net effect has been a surplus of UK-based insulation manufacturing capacity and highly competitive market conditions," said McLeod. In Superglass' fiscal 2013 its operating loss grew to Euro13.2m from Euro2.98m in the fiscal 2012.

Both McLeod and chairman John Colley highlighted Superglass' capital investment programme, Project Phoenix, which delivered cost savings in reduced energy consumption and waste of Euro3.36m in the 2012 – 2013 financial year. Superglass expects revenues to recover slowly in 2014.

Denmark: Rockwool International has reported that its net sales rose by 2% year-on-year to Euro494m for the second quarter of 2013 that ended on 30 June 2013. It attributed the rebound to a recovery in the western European insulation market, especially in Spain, Italy and the UK.

The Danish insulation producer saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 4% to Euro75.6m from Euro7.24m. Profit for the period rose by 8% to Euro26m from Euro24.1m.

In its income statement Rockwool explained that as well as improvements in western European markets it had also seen development in Poland and continued good sales in Russia. Sales in North American remained strong but sales in China disappointed the insulation producer, due to uncertain legislation on the mandatory use of non-mineral wool insulation.

As Reuters reported, from an interview with Rockwool CEO Eelco van Heel, China's changing legislation on non-mineral wool insulation lost the company an order for 25,000t of stone wool placed in late 2012. As a consequence, Rockwool is postponing the construction of a planned factory in China, where it acquired its first and so far only factory in 2010.

For its outlook for the remainder of 2013, Rockwool expects that its net sales will slightly surpass those of 2012.

UK: Superglass Holdings has reported in a period-end trading update that its financial year that ended on 31 August 2013 was in line with market expectations.

The mineral wool producer reported that sales volumes had been volatile throughout the summer of 2013 and overall market demand remained depressed, especially in the retrofit segment where the uptake of insulation measures under the Green Deal initiative remained very low. Insulation measures completed in 2013 under the Green Deal and the Energy Company Obligation (ECO) combined are running at between 80% and 90% below 2012 levels.

Superglass also announced the resignation of its Chief Finance Officer, Allan Clow, and the appointment of Declan George Billington as a non-executive Director.

Denmark: Rockwool International has reported that its net sales rose by 2% year-on-year to Euro494m for the second quarter of 2013 that ended on 30 June 2013. It attributed the rebound to a recovery in the western European insulation market, especially in Spain, Italy and the UK.

The Danish insulation producer saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 4% to Euro75.6m from Euro7.24m. Profit for the period rose by 8% to Euro26m from Euro24.1m.

In its income statement Rockwool explained that as well as improvements in western European markets it had also seen development in Poland and continued good sales in Russia. Sales in North American remained strong but sales in China disappointed the insulation producer, due to uncertain legislation on the mandatory use of non-mineral wool insulation.

As Reuters reported, from an interview with Rockwool CEO Eelco van Heel, China's changing legislation on non-mineral wool insulation lost the company an order for 25,000t of stone wool placed in late 2012. As a consequence, Rockwool is postponing the construction of a planned factory in China, where it acquired its first and so far only factory in 2010.

For its outlook for the remainder of 2013, Rockwool expects that its net sales will slightly surpass those of 2012.

US: Owens Corning has reported a rise in adjusted earnings of 5% to US$69m in the second quarter of 2013 compared to US$67m in the same period of 2012.

The company's consolidated net sales fell slightly to US$1.35bn from US$1.39bn. The building materials manufacturer's adjusted earnings before interest and taxation (EBIT) improved by 6% to US$124m in the second quarter of 2013 from US$17m in the same period in 2012. Also of note in the quarter, in June 2013 Owens Corning acquired Thermafiber, a mineral wool insulation manufacturer.

"We are pleased with our progress in the second quarter and the first half of 2013, with strong margin performance in our Roofing business, price increases and operating leverage in Insulation and improved performance in Composites," said chairman and chief executive officer Mike Thaman.

In its outlook the company expected profitability to improve in 2013 compared to 2012 due to company action, an improving US housing market and moderate global growth. The company expects stronger insulation volumes in the second-half of 2013 driven by residential construction, high capacity utilisation and improved pricing.

UK: Building materials supplier SIG expects its profit for the first half of 2013 to fall year-on-year due to the extended winter, according to a trading update. In the first half of 2012 SIG reported a profit before tax of Euro41m. In the first half of 2013 it is likely to be Euro34 – 36m. The company plans to reduce costs to support full-year profit.

SIG reported that in mainland Europe sales per day fell by around 4% in constant currency. Sales in the UK more than halved, falling by around 1%, due to the end of the Carbon Emissions Reduction Target (CERT) scheme and the slow start of the Green Deal.

"There are signs that market conditions are starting to improve in the UK, although construction activity in mainland Europe remains weak," said SIG in its report.

Ireland: Kingspan Group has reported a particularly slow start to trading in 2013 in an interim management statement. In the release, issued ahead of its annual general meeting, the insulation and building supplies manufacturer said that group sales had risen by 10% to Euro520m for the first four months of 2013. It added that trading had 'picked-up' during March and April 2013.

Kingspan noted that market conditions were weak in UK and the Netherlands. Improvements have been seen in Germany following the group's acquisition of ThyssenKrupp Construction in 2012, and the Irish market saw improvement. The US has had a good start to 2013, Australasia has slowed from 2012 levels and the Middle East and Gulf Cooperation Council regions have remained buoyant.

In its outlook the company noted that a combination of growing order intake levels, improving acquisition benefits and a more diversified geography should help the company in the second half of 2013.

US: Owens Corning has reported consolidated net sales of US$1.3bn in the first quarter of 2013, little change from the same period of 2012. However, the company reported net earnings of US$22m in the first quarter of 2013, compared to a net loss of US$46m in 2012.

"Insulation demonstrated strong price execution and is on track for full-year profitability and double-digit revenue growth in 2013," said chairman and chief executive Officer Mike Thaman. He added that the company remains reliant on

the pace of the US housing recovery and its impact on the margin performance of the Building Materials businesses for future performance.

For its outlook Owens Corning expects at least US$100m in adjusted earnings before interest and tax (EBIT) improvement over 2012 as a result of company actions, an improving US housing market and moderate global growth. It said that the insulation sector will continue to benefit from the growth in US residential new construction, higher asset utilisation rates and better pricing.

Ireland: Insulation and building supplies manufacturer Kingspan has reported that its operating profit grew by 15% in 2012 to Euro105m from Euro90.9m in 2011. Revenue for the year rose by 55% to Euro1.63bn.

Kingspan reported strong overall performance in insulated panels with sales revenues up by 11%, particularly strong in Germany, Canada and Australia. The company reported 'robust' performance in insulation boards where revenues were up 2%, stable in the UK and slightly up in Continental Europe.

"We are pleased to report another positive year of progress for Kingspan, one in which we continued to increase our profitability, generate strong cash flows and widen our global footprint," said Kingspan's chief executive Gene Murtagh.

US: Owens Corning has lost US$56m in the fourth quarter of 2012, pulled down by hefty debt-related and restructuring charges. In the same period of 2011 it reported earnings of US$50m. The construction and industrial-materials company said it expects to get a boost in 2013 from an improving US housing market and moderate global growth.

Net sales for the fourth quarter of 2012 fell year-on-year by 3% to US$1.16bn from US$1.20bn. For 2012 as a whole Owens Corning posted a slight decline in net sales to US$5.17bn from US$5.34bn.

Net sales for the company's insulation business rose by 7% to US$413m in the fourth quarter of 2012 from US$US$387m. For 2012 as a whole net sales in insulation rose by 7% to US$1.47bn from US$1.37bn. The company said that its insulation business should benefit from the growth in residential construction, along with higher utilisation rates and better pricing. Yet Owens Corning noted that prices remain significantly below historical levels.