(Reuters) -Swiss plumbing supplier Geberit gave a downbeat outlook for the building industry on Tuesday after reporting first-quarter results slightly above expectations and announcing a new share buyback programme worth 300 million francs.

The company, whose products include sinks and urinals, said it expected construction activity to decline overall in 2024, particularly new builds. The buyback programme is due to start in the third quarter.

Geberit reported sales of 837.2 million Swiss francs ($923.25 million) for the quarter, down 6.2% on the same time last year, just beating the consensus estimate of 832 million Swiss francs in an analyst poll conducted by newswire AWP.

Sales were hit by weak demand in end markets, Geberit said, but helped by wholesalers restocking. Adjusted for the strong franc, sales fell by 1.4% compared with the first quarter last year.

"With its predominant focus on the European residential construction market, Geberit is currently positioned in an extremely challenging market," wrote Vontobel analysts in a note.

"The performance in 1Q24 is encouraging, showing the company's resilience and ability to generate high-margins and cash flows also in a downturn," they added.

About 90% of Geberit's sales were in Europe last year.

Core profit (earnings before interest, taxes, depreciation and amortisation) of 274.9 million francs was down 7% on the same time last year and beat the 268 million francs expected in the poll.

In local currencies core profit was down just 0.5% on the same time last year.

Net income for the quarter fell 11.4% to 190 million francs, Geberit said, hit by a "significantly higher tax rate" driven by the new minimum taxation rules in the OECD.

Geberit shares were up 1.87% in Julius Baer premarket indications as of 06.40 GMT.

($1 = 0.9068 Swiss francs)

(Reporting by Louis van Boxel-Woolf and Mateusz Dobrzyniewski; Editing by Tom Hogue and Christopher Cushing)

By Louis van Boxel-Woolf and Mateusz Dobrzyniewski