Kingspan shares surge 16% on 'record profits' at building products maker
The To Is Six €435m Be First Kingspan's For Profit Expected Months Around
Shares in Kingspan closed almost 16% higher after the building insulation giant said it earned "record profits" for the first six months, and reassured about its trading outlook despite soaring inflation and global interest rate hikes.
The latest climb in its shares means the Co Cavan-based company that sells into a large number of countries around the world has added over 30%, or around €3.5bn, to its stock market value since the start of the year.
Building-product makers such as Kingspan are under scrutiny for any sign that interest rate hikes are leading to a major hit to its commercial property clients, and whether they are able to pass on increases in costs. However, in an update, Kingspan did not elaborate on pricing. The company, which publishes its results next month, is now valued at €12bn.
Kingspan said the residential sector worldwide was subdued due to the higher interest rates “although the underlying need for housing appears strong in most markets”.
Profit for the first six months is expected to be around €435m, which the company said was “modestly ahead of the €434m reported for the first half of 2022”.
The company, which is led by chief executive Gene Murtagh, said market and category performances have “varied widely”, with its America region outpacing European activity.
The company participated in the inquiry into London's Grenfell Tower fire that killed 72 people. The inquiry questioned the company’s business practice, but Kingspan said its products made only a small share of the insulation used in the residential tower and that it did not supply or recommend the use of the products.
A public outcry subsequently forced Kingspan to cancel plans to sponsor the Mercedes Formula One team.