Cavan-based construction materials firm Kingspan has reported a 35% drop in mid-year revenues, but the group has predicted more stable market conditions for the remainder of 2009.

At the end of June revenue stood at €552.5m, while operating profit dipped by 66%, from €90.1m to €30.3m over the same trading period.

Share returns for the group, which owns timber frame firm Century Homes, fell by 70%.

Earnings before interest, taxes, depreciation and amortisation was down 55% to €50.7m.

Costs were cut by around €60m to cushion the losses, Kingspan said.

Despite this, product demand has stabilised in recent months, according to the group.

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"Operating performance in the second half [of the year] is, however, likely to be more stable than in the earlier part of the year, and further significant declines in the Group’s larger businesses are not expected," the company said in a statement.

Kingspan's insulated panels business, which represents slightly over half of the group's turnover, dropped 32% to €284m, with sales in Ireland down 67%.

Insulation sales dropped 45% to €106.9m, while access floor sales were down 18% to €80m. Environmental and renewables sales fell 42% to €81.6m.

Chief Executive Gene Murtagh said: "Nevertheless, our strategy has remained unchanged – to be at the forefront globally of efforts to drive deeper market penetration of sustainable, low energy building solutions."

Mr Murtagh later conceded that trading in Ireland is exceptionally difficult, suggesting it could be number of years before the residential sector recovered.

Kingspan's refurbishment business has seen growth, pointing towards an increase in upgrades rather than the building of new premises.

(PR/GK)