Building materials group CRH has reported a 19% rise in pre-tax profits for 2007, slightly ahead of expectations, and predicted earnings and profit growth this year.
Pre-tax profits in the 12 months to the end of December rose to €1.904 billion from €1.602 billion in 2006, while revenues increased by 12% to €20.992 billion from €18.737 billion.
Earnings per share rose by 17% to 262.7 cent from 224.3 cent in 2006. The company has announced a dividend of 68 cent for 2007, up 31% on the previous year.
The company spent a total of €2.2 billion on acquisitions in 2007, a new record for CRH. The company operates in more than 30 countries and has around 80,000 employees worldwide.
In Ireland, CRH said that although the second half of the year saw an accelerating decline in residential output from high levels, the National Development Plan continued to underpin infrastructure demand, while private investment remained especially strong in commercial and retail projects.
'As a result overall demand for our products was at a similar level to 2006', the company said.
CRH said that while developments over recent months have added to economic uncertainties, it is well positioned across its operations to deal with the evolving market circumstances.
'Following record levels of acquisition activity in 2006 and 2007, and with an ongoing strong pipeline of opportunities, we are continuing to develop our Western European and North American businesses while building on our growing platforms in emerging markets,' the company said.
CRH said that operating profits in its Europe businesses grew by 36% to €1.106 billion. Organic growth, which accounted for €178m or 61% of the increase, was more than double 2006's organic growth of €81m.
CRH said that its Europe's materials division saw a 'significant' increase in operating profit and margin, driven by exceptionally strong organic growth from operations in Central and Eastern Europe. Its Europe materials division delivered a strong improvement in operating profits and a good margin advance in 2007, it added.
Its Europe distribution unit saw further improvements in sales and operating profits. 'Good market conditions in most of our markets, a mild winter and a relentless focus on margin improvement and cost control, underpinned organic growth,' the firm said.
Operating profit for the Americas operation increased by 3% to €980m. CRH said that robust performances in its materials and products activities, as well as an excellent performance from APACE, were offset by lower profits in distribution and a €78m charge due to a weaker dollar.
CRH shares closed up 33 cent in Dublin this evening.
