The Irish housing market slowdown, and inflated prices in raw materials, could result in earning losses and plant closures this year, according to a leading Irish building products firm.

Kingspan, based in Cavan, issued a statement ahead of its AGM, today in Dublin, highlighting the challenges it has faced in the first quarter of 2008.

The company blamed its struggle on the primary slowdown in the residential construction market in Ireland, and the UK.

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Although the company has reported a more positive outlook in the North American market, with office construction holding its strength, exchange rate movements between the US dollar, sterling and the euro during 2007 could explain a 6% revenue decrease.

Kingspan said costs associated with steel were also increasing and that it is likely there will be a lag-time in the recovery of these costs.

The firm said it is continuing to reduce costs, including "some plant closures and headcount reductions in the UK and Irish off-site businesses".

An investment programme is currently being commissioned to boost new technology, featuring a new insulated panel line and insulated board line. These are expected to hit the market during the next quarter of 2008.

In today’s statement Kingspan said its view of 2008 is unchanged from March, and it still expects an "appreciable year on year reduction in earnings".

(PR)