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BUZZ-SIG: Profit drop and margin squeeze

Reuters - UK Focus

** Construction materials supplier SIG (Frankfurt: 888153 - news) down 5.5 pct, among top fallers on FTSE Mid Cap, after H1 operating margins tighten on higher costs

** Co says H1 operating margin down 100bps to 3.3 pct; lower gross margin and higher operating costs push H1 oper profit 16 pct lower to 45.7 mln stg

** Co says UK & Ireland underlying oper margin down 130bps; says underlying market demand for insulation and interior products in the UK remains "relatively soft"

** Co adds challenging conditions in UK Repairs, Maintenance and Improvement are expected to continue into H2 (rahul.b.thomsonreuters.com@reuters.net)