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[September 2004]
Strong First Half for CRH
CRH PLC, the major Ireland based building materials group and parent company of Ibstock Brick, recorded a strong first half of 2004 with sales up 22% to €5.67 billion, operating profit up 57% to €385 million and profit before tax up 71% to €275 million.
In the Republic of Ireland, residential construction grew strongly with increases in cement, concrete blocks, readymixed concrete and blacktop volumes, although prices failed to compensate for cost increases. While margins declined, profits here were similar at €68 million.
In Britain and Northern Ireland, underlying organic profit improvements combined with a slight strengthening of Sterling resulted in an 8% operating profit advance to €32 million.
In Mainland Europe, more normal weather conditions than in 2003 resulted in much better demand backdrop for the Material Division, with a particularly strong organic performance contributing to a 91% increase in operating profits to €63 million. The Products & Distribution Division continued to experience subdued markets but benefitted from internal improvements and strong contributions from the record 2003 development spend delivering a 124% increase in operating profits to €121 million.
Against a background of higher energy input costs, overall early season activity in the Americas Materials Division was broadly in line with expectations and the traditional first half trading loss declined from €39 million to €31 million. The Products & Distribution Division had a very strong first half with residential construction continuing at a good level and ongoing evidence of a recovering non-residential construction sector. Despite an adverse currency translation impact, this division delivered a 33% increase in operating profit to €132 million.
Overall, currency translation effects, principally arising from the strength of the euro versus the US dollar, had a €4 million adverse impact at profit before tax level in the period. The interim dividend has been increased by 17% which is the 21st consecutive year of dividend increases. Total acquisition and investment spend amounted to €700 million on 21 deals.
ENDS