Building materials firm CRH told shareholders at its AGM today that trading in the first few months of the year had been adversely affected by the weather. It also warned that its markets were likely to remain difficult for the immediate future.
CRH said an exceptionally cold first quarter in Northern Europe adversely impacted its materials division in Poland and Finland.
In the US, traditionally low early season activity levels for the materials division were reduced by severe snowfalls in the northeast and midwest, offset somewhat by milder than usual conditions in the west.
CRH's products and distribution division in the US was also hit by weather conditions which restricted both residential and non-residential construction activity and product shipments.
CRH said that residential construction in Ireland remains buoyant, and combined with good levels of infrastructural activity, has resulted in strong volume increases in the first four months of 2003, despite a weak backdrop for commercial and industrial construction.
Overall construction activity levels in Britain to date are broadly in line with the same time a year ago. Residential demand in Northern Ireland is good but the anticipated benefits from increased road maintenance work have been slow to materialise, CRH said in today's AGM statement.
Shareholders were told that while recent weeks have seen the normal seasonal pick up in activity and some moderation in energy costs, markets are likely to remain difficult for the immediate future.
'We aim to offset the effect of this through our continuing strong focus on cost control, efficiency improvements, the recovery of higher input costs and an active development programme,' Chairman PJ Molloy said.
'However recent currency trends, in particular the weaker US dollar which impacts the translation of our US profits into euro, makes this more challenging,' he warned.
CRH shares had slipped over 3% to close at €14.01 in Dublin this evening.
