Insulation industry news from Global Insulation

Belgium: Etex's sales were Euro3.74bn in 2022, up by 25% year-on-year from 2021 levels. The group's insulation sales were Euro312m, 8.3% of the group total for the year. Its recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) totalled Euro645m, up by 13%. During 2022, Etex reduced its absolute CO₂ emissions by 20% compared with 2018 levels.

Regarding insulation sales, the producer said "The early months of 2022 saw very strong volumes, followed by modest drops. Insulation’s results were impacted by issues surrounding inflation, gas, power and raw materials but the energy savings aspect of insulation made glass wool and extruded polystyrene (XPS) insulation even more attractive than previous years."

Etex expanded its insulation business during the year through its acquisition of Spain-based URSA.

UK: SIG’s sales revenue grew by 17% year-on-year to Euro3.12bn in 2022 on a like-for-like basis. Market demand fell in the second half of the year with particularly slowed growth in Poland and Ireland although growth increased in the Benelux region. The group said that its commercial strategy had strengthened its positions in the markets in which it operate. It observed that although input price inflation eased in the second half of 2022 it had slowed revenue growth. The company also reported a one-off loss of around Euro5.60m in the second half due to Avonside, a large UK-based roofing contractor and one of the group's largest customers, entering financial administration.

France: Saint-Gobain’s sales were Euro25.5bn in the first half of 2022, up by 15% year-on-year from the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 13% to Euro3.68bn. Sales rose by 15% in Northern Europe, by 14% in Southern Europe, Middle East and Africa, by 17% in the Americas and by 30% in Asia-Pacific. The producer ends the period with a net debt of Euro8.3bn, up by 9.2% from Euro7.6bn.

Chief executive officer (CEO) Benoit Bazin said, “Over the coming quarters, we are ready to adapt as needed to the consequences of rising interest rates and inflation along with the geopolitical and energy situation in Europe. Each country CEO has designed action plans, focusing especially on margins and cash flow. In this more uncertain environment, our target is to continue to outperform our markets and our deep transformation will enable us to demonstrate greater resilience. Over the past three years, our teams have successfully risen to the challenges of the coronavirus pandemic, supply chain disruptions and a strong inflationary environment. With portfolio rotation of almost Euro10bn in sales since the end of 2018, and with a local organisation keenly aware of immediate realities on the ground, Saint-Gobain has significantly increased its value creation. Against this backdrop, I am confident in the group’s 2022 outlook, which targets a further increase in operating income compared to 2021 at constant exchange rates.”

US: Owens Corning’s net sales from its insulation division rose by 23% year-on-year to US$859m in the first quarter of 2022 from US$700m in the same period in 2021. Its earnings before interest and taxation (EBIT) grew by 15% to US$129m from US$82m. It attributed this to higher selling prices and sales volumes despite inflation and higher transport costs. Overall company net sales and adjusted EBIT increased by 23% to US$2.35bn and by 48% to US$417m respectively.

The light building materials producer also said that it made the decision to end its operations in Russia in March 2022 in response to the Russian invasion of Ukraine in February 2022. It halted all future investments in the country in April 2022. In 2021 its net sales in Russia represented approximately 1% of the company’s consolidated net sales. The company said it is “working to expedite its exit, while remaining committed to the safety and security of its employees in the country.” Owens Corning’s insulation subsidiary Paroc operates in Russia. The group also runs a composite materials plant at Gous in Russia.