Irish building materials supplier Kingspan Group forecast a "significant" improvement in performance for the first half, following a good start to the year with buoyant markets and order intake in Ireland, Britain and Europe.
Addressing the group AGM today, Kingspan's chairman Mr Eugene Murtagh said the downturn in the US economy has only had a marginal impact on the raised access floor market, and its Tate Global unit, acquired in December last year, has reported satisfactory trading for the first half with operating profits in line with expectations.
He said that although US market conditions remain "a little turbulent", overall given the global aspect of the business it is optimistic about the medium-term outlook.
Kingspan said Tate has launched a campaign to increase the penetration of raised access floors in the US office market from its present low level of 10 per cent. This compares with 80 per cent penetration in Britain.
Kingspan, the largest supplier of raised access floors in the world, said it will be a significant beneficiary as the US market is converted.
The group also said it has identified significant cost savings in Tate which should increase profitability and operating margins in the last quarter of 2001 and through 2002.
Kingspan is planning the installation of two composite panel lines in mainland Europe. Phase one, of what is expected to be a total investment of euro 40 million, is due to be completed by the second quarter of 2002 with the commissioning of the first of these lines.