Ireland's Kingspan down on weak FY profit view; Jefferies flags margin headwind

Kingspan

07/11/2022 09:39

** Shares of insulation provider Kingspan Group Plc  KSP.I 
fall as much as 4.8% to 48.5p
    ** Co sees FY trading profit of around 830 million euros 
($827.43 mln), 4% below analysts' estimate of 869 mln euros
    ** Says raw material prices have peaked and will likely fall
in Q4
    ** Reports higher levels of inventory in insulated panels
for much of the year, which had short-term impact on margins
    ** Co's global sales volumes for insulated panels in Q3 was
sluggish, reflecting a slowdown in order placement
    ** Official guidance for FY trading profit is about 4% below
current consensus and 5% below our estimates- Jefferies
    ** "The bigger near-term headwind is margin as raw material
costs and pricing are normalizing" - Jefferies
    ** YTD sales of 6.25 bln euros, jumping 33% with sales
growth of 17% in Q3
    ** Shares down nearly 52% so far this year as of last close 
($1 = 1.0031 euros)
 (Reporting by Anchal Rana in Bengaluru)
 ((Anchal.Rana@thomsonreuters.com;))