Kingspan posts 34% rise in profits

Irish building materials group Kingspan posted a 34 per cent rise in 2006 operating profit as expected today but warned that …

Irish building materials group Kingspan posted a 34 per cent rise in 2006 operating profit as expected today but warned that growth in 2007 would not match that of recent years.

Operating profit in the 12 months to the end of December rose to €194 million from €145 million in 2005, in line with estimates.

In an upbeat trading statement in December, Kingspan had said it expected to report operating profit growth of about 33 per cent. Revenues last year rose 18 per cent to €1.46 billion.

Tighter environmental laws and demand for more energy-saving buildings have helped Kingspan, which makes insulated panels and other products for the construction industry.

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Ireland's ninth-biggest listed company, with a market value of just under €3.5 billion, said it expected its main markets to grow further in 2007, particularly in Britain and Central and Eastern Europe, but that in Ireland the rapid rate of growth would "inevitably" slow.

Raw material prices were also expected to be less predictable in 200, but overall the company said it expected "another year of progress".