Building materials firm Kingspan has reported a 6% rise in profits in the 9 months to 30 September.

However, the group said that Ireland "remains depressed" and the North American construction environment "remained subdued".

Combined sales in the UK, Ireland and Western Europe grew 16% in the third quarter, while the medium term project pipeline remained broadly flat through the period, where it had been gradually trending upward over the preceding year. Order intake has reduced noticeably from the run rate in the second quarter, but was up 3% on prior year in the period. Central & Eastern Europe sales rose 30% in the quarter.

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The Group has agreed to acquire the European insulation activities of CRH for approximately €120m, which is subject to certain statutory approvals, and expected to complete early in 2011.

The acquisition is expected to be earnings neutral in 2011, and earnings enhancing thereafter.

Net debt at the end of October 2010 was approximately €140m, up marginally from the figure of €135.1m reported. This figure is expected to reduce by up to €10mn by year end.

A spokesperson said: "Kingspan has made clear progress in the growth of its products’ positions in many markets, although this underlying dynamic has been somewhat overshadowed by global weakness in recent years. This traction leaves the Board confident that those foundations will deliver significant growth in the future. More near-term however, the year to date performance coupled with the current order book is likely to deliver a 2010 full year operating profit in the range of €62m to €65m, compared to €62.7m in prior year."

(CD/KMcA)