Building materials group CRH has reported a 16% increase in pre-tax profits to €1.279 billion for the year ended December 2005 and said the outlook for 2006 was 'on the whole positive'.
Sales rose by 13% to €14.449 billion euro, while basic earnings per share increased by 14 % to 186.7 cent.
The board has recommended a final dividend of 27.75 cent per share, an increase of 18.6% on the 2004 final dividend of 23.4 cent. CRH said this gives a total dividend for the year of 39 cent, an increase of 18% and the 22nd year of dividend growth in a row.
CRH said that despite very competitive markets, it was another good year for CRH in Ireland with an increase of approximately 5% in its total cement volumes and profits ahead of 2004.
The company said that total operating profit from European operations improved by 7% to €676m. In Europe Materials, operating profit rose by 18% to €377m, which CRH said reflected a full year share of profit from cement firm Secil in Portugal and a strong underlying advance. Secil was bought in June 2004.
However, CRH said that Europe Products' performance was hit by generally subdued trading a sharp decline in results from its insulation activities. Operating profit in this division fell by 8% to €176m.
Operating profits of €123m from Europe Distribution was just ahead of 2004 figures against what the company called a subdued Dutch retail demand and poor weather early in the year.
Total operating profits from CRH's Americas operations rose by 22% to €716m last year. Americas Materials managed to recover from higher energy costs and saw its operating profits up by 20% to €328m.
Americas Products reported a 23% increase in operating profits to €308m on the back of continuing strong US residential construction and a recovery in non-residential construction. Americas Distribution posted a 27% increase in operating profits to €80m.
'CRH continued to move forward on many fronts in 2005, once again producing new record sales and profits, with strong underlying profit growth and good contributions from acquisitions,' commented company CEO Liam O'Mahony.
'While as always risks remain, the current business outlook is on the whole positive and we enter 2006 with good momentum. A gradual pick-up in European economies seems broadly under way, which if maintained should bring good benefits. In the US, while housing may moderate at strong levels, non-residential construction should continue to recover and highway markets are underpinned by passage of the new Highway Bill,' he said.
'With a continuing focus on operational effectiveness and ongoing acquisition benefits, we look to 2006 with confidence,' he concluded.
CRH shares closed down 20 cent to €27.35 in Dublin.
