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Construction firm Kingspan recorded its first operating profit
growth in the three years in the first six months of 2010,
despite the impact of the severe weather earlier this year.
The company said operating profit grew 9 per cent to €33.1
million, helped by tight control of costs and confirmed it
would resume paying dividends.
"During the first two months of 2010, construction activity
throughout all of Kingspan's markets was impacted by an unusually
severe and prolonged winter, leaving Quarter one's operations
below that of the previous year," the company said in a statement.
"During that period, however, the order book across the group
was building and through the second quarter sales picked up
considerably, particularly in June."
First half sales rose to €558.7 million compared to €552.5
million in the same period in 2009. However, underlying turnover
was down 3.9 per cent.
The Irish market continued to perform at a weaker level than
Kingspan's other sectors. In its insulation market, sales
volumes fell by 10 per cent. However, although the market
remains of come concern, the majority of the company's business
is done outside Ireland.
Chief executive Gene Murtagh remained cautious. "Positive
trends in first half order intake across the business point
to a robust and solid outcome this year - and, together with
the substantial progress made in lowering costs and debt,
there is now scope to restore an interim dividend to shareholders,"
he said.
"Nevertheless, we remain mindful that recent global macro
indicators remain cautious and mixed, while input price increases
will present their own challenges in the months ahead."
Source - The Irish Times
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