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.
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.