Building materials group CRH says poor weather has hit activity levels in its European and British markets in the early part of the year. Measures to prevent the spread of foot and mouth have also hit rural construction in Ireland. CRH shares closed down just one cent at 19.89 in Dublin.
Speaking after today's AGM, however, chief executive Liam O'Mahony said the company was still positioned for overall growth in its business this year, with strong potential for deal flows in the US.
'While economic uncertainties continue with regard to the direction of world markets, and as yet the seasonal pick up in activity has not been as rapid as expected, we nevertheless expect overall improvements in 2001 from our existing businesses,' he said.
He said despite the US economic slowdown there was a stronger growth in new housing than expected, and a good level of demand in the materials business.
O'Mahony said the company's plans for a $375m takeover of Finnish concrete group Addtek were still on the cards. The company is awaiting the outcome of an EU investigation into whether the deal raises competition concerns.
'We are still very keen in principle to complete the deal,' O'Mahony said.
CRH's one for four rights issue in March was well supported by its international shareholder base, with an acceptance level of 94.7%. O'Mahony said it had raised money to fund the company's expansion plans for 'a number of years'.
