Insulation industry news from Global Insulation

UK: SIG’s first-half sales totalled Euro1.29bn in 2021, up by 32% year-on-year from Euro978m. It reduced its loss after tax by 85% to Euro9.45m from Euro62.7m. The company said that continued balance sheet strength enabled investment in its growth strategy. During the half, its net debt increased by 22% to Euro338m from Euro278m, in line with seasonal working capital increase expectations. It added that it has confidence in its ability to manage near-term supply challenges.

CEO Steve Francis said “The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated. The achievements to date have only been possible because of our teams’ energy, resilience and commitment in the face of the continually challenging circumstances, both with the effects of Covid-19 and the more recent industry-wide supply challenges.” He added “Trading in July and August has continued to be solid and we expect continued profit improvement through the second half of 2021, despite the on-going impact of material shortages and cost price inflation. As a result, providing the disruption from these headwinds does not worsen, we now anticipate full year underlying operating profit will be ahead of our prior expectations. The momentum behind our Return to Growth strategy is positioning the Group well, and we have growing confidence in our ability to take advantage of both strong near-term demand and healthy long-term fundamentals, including market tailwinds from sustainability initiatives.”

Ireland: Kingspan’s consolidated net sales increased by 24% year-on-year in the first quarter of 2021 to Euro1.28bn. Insulated panels sales grew by 25% having started the year with a strong order backlog and insulation boards grew 12%. Communications company Edison Group said that growth was most pronounced in Germany, France and Benelux and Latin America, with a strong order intake in North America and the UK. Net debt at 31 March 2021 was Euro352m.

The company noted increasing inflationary pressure and challenges regarding availability despite strong demand and a strong backlog. As such, it has given no guidance for the year.

Kingspan highlighted its inaugural Planet Passionate sustainability report. The report details the company’s achievements in the first year of its 2019 10-year sustainability strategy. In 2020, the producer achieved net-zero energy and cut CO2 emissions by 5% year-on-year. It issued a Euro750m green private placement in September 2020. The company called the major achievements the ‘first leg’ of its decarbonisation journey. In its latest report, it set the target of net-zero CO2 emissions by 2030. Additionally, it is aiming to halve CO2 intensity over the same period. Altogether, Planet Passionate covers 12 sustainability targets across the key areas of energy, circularity, CO2 and water.

Chief executive officer Gene Murtagh said “Our Planet Passionate targets demand radical thinking and action. Our aim is to get as close to zero emissions in our manufacturing as technically possible by transforming our processes. Industry has a vital role to play in addressing the threat of climate change.” He added that the group target of 50% primary raw materials CO2 intensity reduction “will also lower the embodied carbon in our products, and consequently the whole life carbon of buildings.”

US: Huntsman’s first quarter net income was US$708m in 2020, up by 440% year-on-year from US$131m in 2019. It made sales worth US$1.59bn over the period, down by 4.6% year-on-year from US$1.67bn in the corresponding period of 2019. Polyurethane (PU) insulation sales decreased slightly due to ‘decreased demand across most major markets, partially offset by modest growth in polyisocyanurate (PIR) insulation sales volumes.

Huntsman chair, president and CEO Peter Huntsman said, “We have been well-prepared for this global economic crisis. Our balance sheet is stronger than ever before, with significant cash and robust liquidity. Having learned from prior crises, we pre-emptively reduced unnecessary inventories and are reducing capital spending this year by 30%, or approximately $90m, by delaying discretionary spending.”

US: Owens Corning has recorded a first quarter loss of US$916m in 2020, compared to a US$44.0m profit in the corresponding period of 2019. Net sales were US$1.60bn, down by 4.0% from US$1.67bn. Insulation sales grew by 2.0% to US$603m (38% of net sales) from US$591m. The insulation section’s negative balance of earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 71% to US$10.0m US$34.0m.

Owens Corning chairman and CEO Brian Chambers said, “I’m very proud of our team’s strong execution and ability to deliver our first-quarter results in the face of the Covid-19 pandemic. Our long-standing commitment to safety remains at the forefront of everything we do while serving the needs of our customers, our communities, and other key stakeholders.”

Belgium: Recticel has recorded sales of Euro298m in the first quarter of 2020, down by 6.2% year-on-year from Euro318m in the corresponding period of 2019. Recticel said that sales in the first two months of 2020, “remained in line with the previous year despite the impact of the coronavirus crisis on sales and operations in China.” Sales in March 2020 fell by 17% month-on-month, “due to the outbreak and the resulting governmental lockdown measures in most countries.” Insulation sales fell by 2.9% to Euro60.7m Euro62.5m. Recticel said, “Lockdown measures led to a reduction of construction activities as of mid-March 2020. Our insulation plants continued (reduced) operations in all countries except in France where construction activity was halted since mid-March 2020.”

France: Saint-Gobain’s net profit in 2019 was Euro1.45bn, up by 207% year-on-year from Euro474m in 2018. Its net sales were Euro42.6bn, up by 1.9% from Euro41.8bn in 2018. Saint-Gobain chairman CEO Pierre-André de Chalendar praised the year’s performance in spite of a ‘less supportive market environment in the second half.’ He said, “For 2020, in a more uncertain market environment, Saint-Gobain should continue to benefit from its attractive positioning and from the results of its ‘Transform & Grow’ initiative, and is targeting a further like-for-like increase in operating income with an uncertainty about the impact of the coronavirus.”

Denmark: Rockwool’s post-tax profit for 2019 was Euro285m, up by 7.5% from Euro265m in 2018. Sales rose by 3.2% to Euro2.8bn from Euro2.7bn. The company’s insulation section saw ‘mixed market conditions’ but ‘showed modest growth’ over the period, thanks in particular to state-supported energy efficiency improvement in construction practices generating increased demand in the South-West Europe region.

Rockwool said that it invested in long-term growth, having opened a plant in Romania in late-2019, with a capacity expansion to a German plant due to come online in mid-2020 and a further plant in the US to follow in early 2021. Rockwool Group chairman Henrik Brandt and CEO Jens Birgersson said, “For the fifth year in a row, our customer satisfaction scores increased.” Satisfaction rose by 14% year-on-year.

US: Huntsman has acquired the spray polyurethane foam (SPF) insulation producer Icynene-Lapolla from an affiliate of FFL Partners for US$350m. Icynene-Lapolla operates production facilities in Houston, US, and Mississuaga, Canada and made sales in excess of US$200m in 2019. Huntsman chairman, president and CEO Peter Huntsman said, “This combination of companies will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates, improving energy efficiency.”

France: Hirsch France, a partnership consisting of 66% Hirsch and 34% BewiSynbra, has purchased six Saint-Gobain expanded polystyrene (EPS) insulation plants and 49.9% of shares in Isossol from Saint-Gobain subsidiary Placoplâtre.

Saint Gobain’s nine-month sales fell by 4.1% year to Euro31.1bn to 30 September 2019 from Euro32.5bn. The group is targeting annual divestment equivalent to Euro3.0bn to cut losses.

North America: Sales of thermoplatic polyurethane (TPU) has increased year-on-on year in the six months to 30 June 2019 by 4.0%. The proportion of domestically produced TPU exported fell by 38.3%.

Data from the American Chemistry Council and Vault Consulting indicate American demand responding well to TPU’s tensile strength and grease resitance, even as polyurethanes lose out to substitutes in the Asian and European insulation sectors.