CRH builds profits
Building materials giant CRH today said it expected annual profits to break through the €1bn mark for the first time.
The group said better weather, acquisitions and strong organic growth contributed to its strong performance in the year to December 31.
The impact of higher energy prices and rising input costs in the second half affected the Dublin-based firm, but profits still showed a mid-single digit rise in the period.
CRH, which also makes concrete, insulation and fencing among other products, posted profits of €864m last year.
In a trading statement ahead of its full-year results in March, CRH said the number of bricks sold by Ibstock was “just below” 2003 levels.
CRH said a modest strengthening of sterling against the euro would contribute to higher operating profits for Britain and Northern Ireland than last year.
The company has spent around €2bn on acquisitions in the past two years. It also announced today a series of acquisitions and development projects totalling €309m.
In America, where CRH does around half of its business, the products and distribution arm had a strong year, with a good level of residential demand. There was also continued evidence of recovery in the non-residential construction sector.
In Ireland, residential construction grew strongly with an estimated record 77,000 house completions compared with 68,800 in 2003.
