ROCKWOOL reports solid Q3 2018 performance

23 November 2018

Highlights include continued high sales growth and increased profitability

Wangjing SOHO, Thermal Properties

Highlights

Third quarter sales increased 14.6 percent in local currencies, reaching EUR 692 million.  Year-to-date Q3 sales increased 16.1 percent in local currencies, totaling EUR 1,962 million.  The sales increase has been driven by good market conditions and an increased demand for non-combustible insulation products.

Third quarter earnings (EBIT) reached EUR 97 million, an increase of 28 percent over last year, while the Q3 EBIT margin increased 1.6 percentage points to 14 percent.  For the year-to-date Q3, EBIT increased 39 percent compared to the same period last year, reaching EUR 258 million, generating an EBIT margin of 13.2 percent, up 2.5 percentage points.

Outlook 2018

For the 2018 outlook, growth in net sales is now expected to be 14-15 percent in local currencies (previously announced 13-15 percent), including around 2-3 percent from the acquisition of Flumroc. In addition, the investment level excluding acquisitions is now expected to be around EUR 230 million (previously announced EUR 260 million), mainly due to paying a number of large contracts later than expected.

CEO Jens Birgersson comments, “We are pleased with our sales and profitability performance, as we achieved good top line growth in all major regions and good profitability across the board.  The higher input costs we’re experiencing are being offset by strong factory performance and high productivity”.

Birgersson continues, “It’s also gratifying that our sustainability efforts are being recognised, with the Standard & Poor’s Trucost analysis confirming that 100 percent of ROCKWOOL’s products contribute to meeting UN Sustainable Development Goals”.

On 31 October 2018, the Group acquired 100 percent of the shares in KEWO Insulation business near Yangzhou, China. The company has a manufacturing facility located 200 km northwest of Shanghai and employs 140 people. The additional capacity and location of the factory will allow for ROCKWOOL in China to continue the positive development we have achieved over the past few years. 

About the ROCKWOOL Group

At the ROCKWOOL Group, we are committed to enriching the lives of everyone who experiences our product solutions. Our expertise is perfectly suited to tackle many of today’s biggest sustainability and development challenges, from energy consumption and noise pollution to fire resilience, water scarcity and flooding. Our product range reflects the diversity of the world’s needs, while supporting our stakeholders in reducing their own carbon footprint.

Stone wool is a versatile material and forms the basis of all our businesses. With more than 11,000 passionate colleagues in 39 countries, we are the world leader in stone wool solutions, from building insulation to acoustic ceilings, external cladding systems to horticultural solutions, engineered fibres for industrial use to insulation for the process industry and marine & offshore.

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