Strong first quarter performance supports positive outlook for the year

18 May 2018

“The strong first quarter performance is primarily driven by growing demand for our non-combustible insulation as well as our focus on productivity improvements and pricing. Owing to our broad-based manufacturing footprint, particularly in Europe, we are able to flexibly service growing customer demand, even if this results in somewhat increased logistics costs”.

MahaNakhon, Fire-resilience

Highlights first quarter 2018

  • Sales in Q1 2018 reached EUR 603 million, a growth of 17 percent in local currencies including acquisitions, which contributed three percentage points. The negative currency impact was four percentage points.
  • EBIT in Q1 2018 increased 53 percent to EUR 70 million, with an 11.6 percent EBIT margin, up three percentage points from last year
  • Investments reached EUR 48 million, up EUR 13 million compared to last year, primarily due to ongoing expansions in Poland and the United States.
  • Annualised return on invested capital reached 18.6 percent compared to 15.5 percent last year, driven by higher operational earnings.
  • In addition, ROCKWOOL publishes its 2017 Sustainability Report.

Outlook 2018

  • Growth in net sales is expected to reach 7-10 percent in local currencies, including around two percent from the acquisition of Flumroc. With lower comparables, we expect higher growth rates in the first half of the year.
  • EBIT margin is expected to reach around 13 percent (as announced on 30 April 2018).
  • Investment level excluding acquisitions is expected to be around EUR 260 million from previously EUR 230 million, mainly related to investment in the UK to increase capacity.
RockchatBETA