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05 December 2023

Kingspan may close more plants as profit falls 77%


By Staff Writer

Kingspan Group, Europe's largest maker of flooring and insulation panels, said it will not pay a final dividend and may close more plants after full-year profit fell 77 per cent. Net income declined to €43.9 million (Dh202.6m), from €18m a year earlier on rising costs and reduced demand, Kingspan said yesterday in a statement.

"Unfortunately, things haven't bottomed out in many of our markets," Chief Executive Officer Gene Murtagh said in a phone interview yesterday.

"There might be some more plant closures, particularly in the environmental side of the business."

The UK and Ireland, where Kingspan gets around 70 per cent of its sales, are both mired in a recession and housing slump, prompting companies to postpone or cancel construction products.

The euro's advance against the UK pound also had a "negative impact" on results, the company said. Not paying a final dividend for 2008 is a prudent measure in the interest of preserving cash in the group and protecting the balance sheet in what can be expected to be a tough trading period, Kingspan said in a statement yesterday.