SIG Earnings Fall After Long Winter Slows U.K., Europe BuildingEshe Nelson
SIG Plc, a U.K. distributor of insulation to builders, said first-half earnings declined after extended winter weather slowed construction in Europe and cut demand for the company’s products.
Underlying operating profit excluding amortization and one-time items dropped 13 percent to 36.2 million pounds ($56.2 million), as revenue fell 0.2 percent to 1.28 billion pounds, the Sheffield, England-based company said in a statement today. Revenue declined 4.5 percent on a like-for-like basis in continental Europe.
“While there are signs that market conditions are starting to improve in the U.K., construction activity in mainland Europe remains weak,” Chief Executive Officer Stuart Mitchell said in the statement.
There were signs of improvement in the U.K. toward the end of the half, with increased activity in the residential sector and the British government’s Help-to-Buy program, the company said. First-half revenue in the U.K. and Ireland fell 2.2 percent on a like-for-like basis.
SIG shares fell 3.1 percent to 182.20 pence at 8:45 a.m. in London trading, paring their advance to 51 percent this year and giving the company a market value of 1.08 billion pounds.