Ibstock, a leading U.K. manufacturer of PVC products, announced that its sales volumes saw a slight decline in the third quarter due to subdued market demand. However, the company has maintained its full-year underlying profit expectations unchanged.
Despite the weaker volumes compared to the second quarter, Ibstock managed to maintain robust margins by implementing effective cost-cutting measures and maintaining stable pricing.
Looking ahead, the company anticipates that the benefits derived from its cost-cutting actions will continue to counterbalance the demand weakness in the final quarter of the year. Ibstock did not provide a specific figure for this expectation.
In response to the challenging market conditions, Ibstock pledges to actively manage its capacity and costs in alignment with market demand.
As macroeconomic conditions begin to stabilize, Ibstock foresees a recovery in market activity, particularly in relation to the significant underlying demand for new housing in the U.K.
While remaining cautious about the pace and timing of this recovery, Chief Executive Joe Hudson expressed confidence in the company’s ability to adapt to market conditions and take necessary actions to preserve performance. Furthermore, he emphasized the company’s commitment to remaining well-positioned for increased activity.
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