Reuters: Global Markets: Kingspan sales rise, notes dip in sentiment

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Kingspan sales rise, notes dip in sentiment May 10th 2012, 07:25 DUBLIN | Thu May 10, 2012 3:25am EDT DUBLIN (Reuters) - Irish building supplies company Kingspan (KSP.I) forecast single-digit first-half sales growth, after reporting its latest sales were up 8 percent despite a dip in sentiment. Kingspan, the No.1 producer of insulation in Britain, Ireland, Canada and Australasia, said on Thursday major markets in Britain and Germany were stable, with the Netherlands remaining difficult. Its sales rose to 473 million euros ($612 million) in the four months to end-April, with sales up 5 percent at constant exchange rates. "The year opened with relatively more optimism regarding potential activity levels in some construction markets. This dissipated somewhat as we progressed through the first quarter with sentiment weaker now than at the beginning of the year." "The construction environment in our core markets remains stable, albeit uncertain, and it is unlikely, that growth will occur in these markets this year," it said. Kingspan shares were down 1.1 percent in early trading. European builders noted weak first quarter earnings after severe weather, rising fuel costs and cutbacks in domestic public spending projects. GRAFTON Irish building and home improvement supplies group Grafton (GRF_u.I) also noted subdued volumes in Britain, and said its first-quarter operating profit rose mainly thanks to cost-cutting measures. Sales in the four months to April rose 5.3 percent to 642 million euros, boosted by a favorable exchange rate when translating sterling turnover against the euro. Its business in Britain, where it is the fourth-largest building merchant, showed solid improvement. Grafton competes with the likes of Travis Perkins (TPK.L) and Wolseley (WOS.L). ($1 = 0.7733 euro) (Reporting by Lorraine Turner; Editing by Dan Lalor) Link this Share this Digg this Email Reprints

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