Kingspan, the Irish building materials group, today reported pre-tax profits of €83.9m in the first half of 2008, down sharply from €108.1m - 22% - in the same period in 2007.

Sales fell 6.5% to €849.4m and there was a small increase when the impact of currency movements were stripped out. Earnings per share were down 21% to 41.4 cent and an unchanged interim dividend of eight cent will be paid.

Gene Murtagh, Chief Executive Officer, commented:"The first half of 2008 has seen Kingspan deliver a comparatively robust operating performance against a difficult international backdrop where the headwinds of contracting markets, rising raw material costs, and unfavourable foreign exchange movements remain in place. 

The rationale for high performance building solutions that reduce energy consumption and carbon emissions is now widely accepted. As evidenced by the recent acquisition of Metecno Inc.  in the US, Kingspan continues to invest in the business, undertake cost initiatives and widen its geographical footprint to leave the group well-positioned for a rebound when the current cyclical weakness reverses." 

Kingspan said its performance was strong in western and central Europe and solid in North America, but it was affected by the construction slump in its UK and Irish markets.

In the insulated panels division, which makes up 40% of turnover, sales were down 8% to €337.6m, with a 20% decline in Ireland. Turnover in the insulation boards division fell 2.5%, with a 5% drop in Ireland.

In Kingspan's environmental and renewables business, turnover was flat. but sales in the off-site and structural division dropped 18.5%, hit by the decline in house building in Ireland. Access floors sales grew by 5.5%, helped by strong US growth.

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