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[July 2004]
Good Start Continues for CRH
Ireland based CRH PLC - the parent company of Ibstock - said in its trading update of 6 July 2004 that after a good start to the year, generally favourable trading had continued through May and June and that 2003 acquisitions were contributing well. After an adverse currency translation effect of €4 million, CRH expects to report pre-tax profits for the six months to 30 June 2004 approximately €100 million ahead of 2003's weather affected €161 million.
Although first-half Ibstock brick volumes were slightly below 2003 levels, consistent with the market, further price improvements were achieved.
Overall, the group said its cash flow and financial position remained strong and, while acquisition activity would result in a higher first half interest charge, EBITDA/net interest cover for the 12 months to 30 June 2004 would be approximately 13 times.
As far as the overall outlook for CRH is concerned, in the USA the economy and overall construction market continue to improve although, as always, there are regional variations. Economies in Europe, though generally subdued, are showing signs of progress. Risks and challenges remain, added CRH, particularly with continued high energy prices and the group maintains its focus on operational performance and the recovery of higher input costs.
Second half performance last year was boosted by catch-up from a weather affected first half and provides a challenging base for comparison. However, CRH had a strong first half in 2004 and it anticipates that full-year profit before tax will show a healthy advance on the reported 2003 level of €864 million.
ENDS