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[March 2005]
Landmark Year For CRH
CRH PLC recorded a landmark year in 2004, with profit before tax exceeding 1 billion for the first time, reflecting excellent full year organic growth and a significant incremental contribution from acquisitions.
In Ireland, although product prices failed to compensate for cost increases, volumes showed satisfactory improvements to leave operating profit there of 129 million marginally below last year's level. In Britain and Northern Ireland, underlying organic improvement combined with a slight strengthening of Sterling resulted in a 12% operating profit advance to 64 million. In Mainland Europe, more normal weather conditions and underlying sectoral growth in many of CRH's Materials Division's markets resulted in a 46% increase in its operating profit markets. However, despite higher input costs, underlying performance improved and incremental benefits from 2003 and 2004 acquisitions resulted in a 62% advance in operating profit to 269 million. While escalating energy costs eroded the benefits of price improvements for the Americas Materials Division, a sustained focus on operating cost reduction helped deliver a modest improvement in US dollar operating profit. The Americas Products & Distribution Division had a strong year with continuing good residential demand and ongoing evidence of recovery in the non-residential sector leading to a 31% increase in US dollar operating profit. Overall results for the Americas Divisions were 16% ahead in US dollar terms; however, the weaker dollar resulted in a 6% increase in reported operating profit to 591 million.
Reflecting the better trading conditions, CRH announced that the 2004 dividend had been increased by 17.4%; this is the 21st consecutive year of dividend increase.
ENDS