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.

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 11,600 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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