'Subdued' SIG outperforms market

Insulation and construction products supplier SIG said that it has outperformed the market in the year-to-date but warned that demand will remain "subdued".

Group sales from continuing operations were up by around 8% for the ten months to the end of October, compared with the same period last year, leading the firm to believe it has outperformed its competitors.

The firm said that trading has remained in line with management's expectations, but as anticipated, given tougher comparators and the weaker macro environment, year-on-year sales growth in Mainland Europe has moderated from the high single digit percentage growth achieved in July.

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In a statement the firm said: "SIG has made good progress so far this year in delivering on both its financial targets and key strategic initiatives. Looking ahead to 2012, overall demand levels in SIG's countries of operation are likely to remain subdued.

"The UK and Irish markets are expected to show some modest decline compared with 2011, reflecting lower consumer spending and the impact of government austerity measures. While performance in individual countries may differ, overall SIG expects demand in Mainland Europe to range from flat to slightly positive.

The share price rose 1.35% to 93.75p by 15:41.

NR