CRH shareholders heard today that overall trading in the first four months of 2005 has been positive.
However, delegates at the company's AGM in Dublin were told today that a strong start in its American operations was partly offset by the effects of bad weather in Northern Europe, which hampered activity in a number of its operations.
CRH said that overall volumes are broadly in line with 2004 in its Europe Materials division, while price increases necessary to recover higher energy and input costs are being implemented. It added that Irish construction activity continues at a strong level with volumes ahead in most product categories.
The company said the overall economic backdrop for its Europe products and distribution activities in the Benelux, Germany and France remains subdued and trading over the early less busy months was not helped by severe March weather.
CRH said that although the construction season for its Americas Materials Division has yet to get fully underway in many of its market areas, activity levels to date have exceeded expectations.
'The indications from early awards of highway sector paving contracts suggest good progress in our efforts to improve product prices and recover input costs, while backlogs are solid,' CRH Chairman PJ Molloy said.
During the first four months of 2005, CRH completed 15 acquisitions totalling about €100m. The company said it continues to see significant opportunities for more deals across its operations and 'remain committed to completing transactions at prices that will contribute to long-term value creation for our shareholders'.
The CRH Chairman said that energy markets remain volatile and higher input costs are generally a feature across its operations. But it added that it is encouraged by results to date in achieving cost recovery.
'While as always there are uncertainties in economies and markets, overall 2005 has started well and with out sustained focus on cost effectiveness and operational performance we look to continuing progress as we move into the more profitable second half of the year,' Mr Molloy added.
CRH shares closed 23 cent higher at €19.68 in Dublin this evening.
