Insulation industry news from Global Insulation

US: Installed Building Products Inc (IBP), which produces and installs insulation and complementary building products, has announced its results for the first quarter of 2015, which ended on 31 March 2015.

For the first quarter of 2015, net revenue grew by 22.7% year-on-year to US$130m. On a same branch basis, net revenue improved by 14% from the prior year quarter, with approximately half of the growth attributable to an increase in the number of completed jobs and the remainder through price gains and a more favourable customer and product mix. Gross profit improved by 29.2% to US$34.1m and gross margin expanded to 26.3% from 24.9% in the same period of 2014. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 78.9% year-on-year to US$7.6m, largely due to higher gross profit. Operating income improved to US$3m from US$0.9m in the prior year quarter. Adjusted net income from continuing operations was US$1.4m compared to US$0.1m in the same period of 2014. Selling, general and administrative expenses as a percentage of net revenue was stable at 23.4% compared to the same period of 2014, primarily due to higher net revenues that partially offset additional costs associated with being a public company and personnel costs to support growth.

"We continue to effectively execute our growth strategy, producing solid increases in net revenue, same branch sales and profitability," said Jeff Edwards, chairman and CEO. "In the first quarter 2015, our branches continued to exhibit growth trends above the rate of improvement in US residential construction and we further benefitted from our local leadership across our national network of locations. We remained focused on actively managing our costs to achieve another quarter of improved profitability while we further expanded our operations. Since the beginning of 2015, we have significantly expanded our geographic reach with the addition of market-leading insulation installers. We are especially pleased with the addition of BDI, which further strengthens our presence in the western US. As we move forward in 2015, we expect our branches to continue to perform well in their local markets and we are firmly positioned to capitalise on improving residential end markets. Additionally, we remain focused on pursuing select accretive acquisitions and leveraging our cost base to further enhance our margins and cash flow."

Luxembourg: Armacell, which produces flexible insulation foams and engineered foams for the equipment insulation market, has successfully continued its international growth strategy in 2014.

Armacell increased its net sales by 8.8% year-on-year to Euro452m in its 2014 financial year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 9.6% year-on-year to Euro71.2m in 2014. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 8.7% to Euro56.1m. Due to continued efforts to improve cost performance, Armacell maintained an EBITA ratio relative to net sales of 12.4%.

Important drivers of Armacell's positive development were the ongoing growth in the construction/HVAC (heating, ventilation and air conditioning) business as well as the growing demand for the substitution of existing insulation with high-performance materials. A number of other growth drivers, such as continuing urbanisation, greater energy-efficiency and a renewed focus on noise protection, are also driving demand for the company's technical solutions and products.

"2014 was a successful year for Armacell. Our profitable growth in both our business segments and across all of our regions underlines the significance of our consistent international growth strategy," said Patrick Mathieu, CEO of Armacell International SA.

In 2014, Armacell recorded net sales growth in both of its business segments and across all three regions. In the Advanced Insulation business, net sales were up by 8.9% to Euro356m. This division accounted for 79% of net sales in 2014. Advanced Insulation encompasses all company activities relating to the development of flexible insulation foam products for the insulation of equipment. These include markets in which energy distribution is required, such as in commercial and residential construction, industrial applications, or the oil and gas industry.

In the Engineered Foams business segment, net sales increased by 8.9% to Euro94.6m, accounting for 21% of net sales in 2014. In this division, Armacell develops light foams for use in a wide range of end markets in which both product weight and robustness are essential, such as the automotive and wind energy industry.

A core component of Armacell's international growth strategy is its presence in emerging markets, which Armacell was able to further reinforce in 2014. In June 2014, it purchased the remaining shares in Armacell Zamil Middle East Company (AZMEC) in Saudi Arabia, from its previous joint venture partner Zamil Industrial Investment Co. Armacell also purchased Armatech Co Ltd in Korea, a long-time distribution partner and leading provider of engineered foams for the heating, sanitation and air conditioning industry.

Armacell consistently pursued its international growth strategy in the first quarter of 2015. It acquired Turkish insulation materials manufacturer Das Yalitim Sanayi ve Ticaret Anonim Sirketi (OneFlex). Armacell also acquired Industrial Thermo Polymers Limited (ITP) in Canada.

In 2015, Armacell will continue to focus on expanding its strong market position, globally marketing its technologies and delivering on its international growth strategy.

Ireland: Kingspan has reported a near 30% increase in group sales for the first four months of 2015, driven by favourable currency movements and strong performances in its core markets of the UK and North America. The building materials and insulation products provider said that sales in the first four months reached Euro719m, 28% ahead of the same period of 2014.

Kingspan said that underlying profitability has been strong, "Complemented further by favourable translation, reflecting Euro/Sterling and Euro/Dollar exchange rates, which are significantly better than the average rates of the last 10 years." Management said that current trading patterns coupled with a strong order backlog point to a strong first half for the group, despite flat conditions in mainland Europe and 'impending weakness' in both Canada and Australia.

"The combination of recent development activity, growing conversion, a strong innovation pipeline and the increasing emphasis worldwide on energy-efficiency leave us confident about Kingspan's longer term future," said management.

Earlier in 2015, Kingspan closed its Euro315m takeover of Belgian Joris Ide. While the deal helped push the group's net debt levels up by Euro273m to almost Euro400m, Kingspan still has a 'robust' funding position, with Euro425m of lending facilities still undrawn.

Sales in Kingspan's core insulated panels division increased by 28% year-on-year in the first four months of 2015, aided by a 3% boost from acquisitions. Insulation board sales revenues were up by 40% and access floors saw a 19% revenue rise. The environmental division saw a 9% sales rise.

The group said recently that it was eyeing up Latin America as a likely next step in its ongoing geographical expansion, with some kind of presence likely to be taken in Brazil and Mexico in the next few years.

UK: Two management buyouts (MBOs) at Synbra Group have resulted in the establishment of the UK's largest expanded polystyrene (EPS) producer.

With the financial backing of Mobeus Equity Partners, the management of Styropack and Jablite have successfully completed MBOs. The new company is owned by Richard Lee, the former CEO of Styropack, as well as Ken Hutchins, who now acts as finance director. The two other owners are Wayne Brown, who will oversee operations and Mobeus' John Colley, who has been named chairman.

The new owners have assured customers that business will proceed as usual, adding that they plan to further strengthen the two companies' market share in the future. "We are absolutely determined to grow our new company into a larger, thriving business whose products are always the first choice for insulation and packaging in the UK," said Lee. Styropack produces packaging solutions for the shipping, automotive, pharmaceutical, fishery and gardening segments, while Jablite specialises in the manufacture of EPS insulation.

US/UK/Germany: US-based RPM International Inc has announced that its German tremco illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd, the UK market leader in fire-stopping solutions for the construction industry. Based in Kent, England, Firetherm has annual net sales of approximately Euro6.61m. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Firetherm manufactures and supplies a broad range of fire-stopping products, intumescent coatings and fire-rated sealants and fibreboards. They are primarily sold to specialist fire-stopping contractors, general contractors and home-builders.

"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our tremco illbruck Group and its existing Nullifire intumescent coatings business. The acquisition expands tremco illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the UK," said Frank C Sullivan, RPM chairman and CEO. "We expect to grow Firetherm in the UK and internationally by leveraging its products across the tremco illbruck distribution network."