SIG benefits from mild weather

0
Have your say

Building products group SIG expects full-year profits to top analysts’ expectations as a milder winter boosted construction activity, but the company warned that volumes could be slightly down in 2012.

The Sheffield-based company, which supplies insulation, roofing and specialist construction materials, expects adjusted pre-tax profits to be slightly above the upper end of the range of analysts’ expectations for 2011.

Sales from continuing operations rose eight per cent to £2.74bn.

Analysts were expecting the company to report pre-tax profits of £77.3m on revenues of £2.75bn.

Earlier this week, Britain’s largest tile retailer Topps Tiles said like-for-like revenues in the first 13 weeks of the financial year fell by 4.2 per cent due to tough trading conditions.

Even though SIG warned of a drop in volumes in 2012, it expects to continue to gain market share.

SIG’s shares fell five per cent in the last three months, compared with a two per cent rise in FTSE Mid 250 Index.

They were up 1.5 per cent this morning.