Industrials

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Cairn Homes

Mix and buyback drive higher 2020/2021 earnings

Mix effects on average selling prices (ASPs), along with the accretion from the company’s share buyback programme, are the main drivers of our c.4% increase in estimates for the...

Builders merchants

2019 results preview: a turning point in the UK?

Upcoming results from the leading UK building distribution businesses should confirm expectations; it will be outlook commentary that will really grab attention. There has been a...

HeidelbergCement AG

Demand slows but lower costs help margins

Headline results aside (pre-announced), key take-outs from HeidelbergCement’s (HEI) trading update include: 1) Q4 like-for-like (lfl) sales slowed sharply, down 4.5% year-on-year (yoy),...

Buzzi Unicem

Strong finish, even stronger cash performance

Buzzi Unicem expects FY19 EBITDA of c.€700m, 3% better than our forecast, aided by a strong finish to the year in the US. The group’s financial position has improved again, and net...

Mincon Group

Greenhammer and Lehti to mitigate the effect of lower 2019 base

The ramp-up of Greenhammer and the acquisition of Lehti Group have substantially mitigated the future negative impact of lower margins which came through last year. The effect from...

Kingspan Group

Rockwool ends 2019 on a more positive note

Rockwool will be happy to leave 2019 behind. Management had to lower its revenue growth expectation during the year while the share price performance significantly lagged its peers....

Kingspan Group

Stick with the winner…but valuation places onus on M&A

Kingspan’s valuation is now 25-30% above its five-year average. While rating expansion is also evident in other high-quality European industrials, it does complicate the near-term...

Ferguson

US listing moves closer — buyback extended

Ferguson has bowed to the inevitable and seems set to move its listing to the US. The group has outlined two potential listing structures — either a full US primary listing or a...

European building materials

Emerging risks to price-cost equation

Upcoming sector results have been well flagged, so we expect the companies to major on self-help, cash generation and sustainability. That combination still leaves one clear winner in...

Saint-Gobain Group

Asbestos and activism

Saint-Gobain has moved to resolve its legacy asbestos issues once and for all. An affiliate of the group’s CertainTeed business has filed for Chapter 11 bankruptcy in an effort to...