Reuters logo
UPDATE 1-SIG posts higher profit, expects tough 2012
March 14, 2012 / 8:43 AM / 6 years ago

UPDATE 1-SIG posts higher profit, expects tough 2012

* SIG sees volumes to be flat at best in 2012 -CEO

* Trading patterns in 2012 expected to be uneven

* 2011 profit up sharply; shares jump

By A. Ananthalakshmi

March 14 (Reuters) - British building products group SIG Plc said volumes would be at best flat in 2012, but expected new branches and price increases to help it get through a tough construction market in Europe.

“We don’t see any great recovery in the countries in which we operate,” Chief Executive Chris Davies told Reuters.

Davies said SIG -- which has all its operations in Europe -- hoped to pass on price increases to its customers.

SIG’s shares rose 6 percent to 121.6 pence at 0840 GMT, after the company said that full-year underlying pretax profit grew 27 percent to 81.7 million pounds ($128.56 million).

Revenue increased 8 percent to 2.74 billion pounds.

Momentum from branches opened during 2008-10 that contributed over 100 million pounds in revenue to 2011 would continue, the CEO said.

The company, which supplies insulation, roofing and specialist construction materials, expected to open 15 to 20 new branches every year over the medium term.

SIG said sales per day so far this year were about 1 percent ahead of 2011 despite harsh winter weather in February.

CEO Davies said he expected trading patterns in 2012 to be uneven as construction in individual sectors and countries respond to local factors.

The London Olympics, for instance, would be disruptive to SIG’s trading as some roads would be shut down and contracts pushed up or delayed, Davies said.

“It’s not going to affect demand for the year as a whole. But it will disturb normal trading patterns,” Davies said.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below