Kingspan Group Plc, the building materials group, in a trading update today, said  overall trading has been more steady over recent months and it is expected that operating profit for the year as a whole will be in the region of €60m (after amortisation). It said that this performance has been aided in part by the group's fundamentally realigned cost base, minimal raw material inflation and a positive sales mix, with higher end products trading comparatively well. Third quarter revenues are down 28% on the same period in 2008.

Volumes since mid year are firmer than in the first half, with the momentum continuing into quarter four.  Kingspan says the exception to this is Access Floors, where demand patterns are traditionally late cycle in nature.  In total, group revenues on a constant currency basis in quarter three were down 28% on prior year, a slight improvement on the year to date figure which is down 29%.  Overall, quarter three sales are up 5% on quarter two.  

The company said cash generation has been exceptionally strong throughout the year, and net debt at the end of October was approximately €190mn - - a reduction of approximately €110m during the year. 

Kingspan said high rise is expected to weaken in 2010, and low rise commercial is expected to remain weak but stable, while residential is showing some signs of recovery. 

By major product group/region, the trend in volumes is set out below:

* Sales revenue figures on a like for like and a constant currency basis.