CRH told shareholders at its AGM today that its goal of achieving another year of profit and earnings growth has become more challenging.
It blamed this on the continuing weakness of the dollar and weaker trends in a number of its markets - including Ireland, Spain and the US.
It said that overall profitability in the traditionally less significant months from January to April is currently running behind the very strong performance of the four month period the same time last year.
The company said overall results to date this year for its European business were similar to 2007. It said its Europe Materials division has had a positive start to the year with major advances in Poland and Ukraine more than compensating for declines in the Irish and Spanish markets.
CRH said the benefits of continuing growth in infrastructure investment have been outweighed by sharp reductions in residential construction activity.
In its Europe products division, trading in January and February were well ahead of 2007, but the March performance was lower than last year due to an earlier Easter and poor weather conditions. April then saw a rebound and results to date are in line with the very strong start experienced in 2007, CRH added.
CRH'S Europe distribution division saw lower activity levels and profitability in its DIY operations in the Benelux areas due to weakening consumer confidence. This offset the benefits of a generally good start across its builders' merchanting operations.
CRH said that early indications from its America's materials unit indicate a continuation of the positive pricing environment and slightly softer volume trends of recent years. While energy costs will be higher in 2008, its liquid asphalt winter-fill programme has been encouraging, it added.
The Americas products division is seeing ongoing declines in US residential building and some evidence of moderation in non-residential activity.
While its Americans distribution operating margins are lower, turnover is ahead of 2007. CRH says this is due to the acquisition last year of Acoustical Materials Services.
'Overall for the Americas, results to date are behind 2007 mainly reflecting continuing difficult trading in residential markets,' it added.
CRH said that the further depreciating US dollar over recent months, along with weaker trends in a number of markets, has made its 'goal of achieving another year of profit and earnings growth more challenging'.
'However, CRH'S profitability and cash flow remain well underpinned by its geographic, sectoral and product balance and as we move into the busier and more significant trading months we have intensified our emphasis on operational efficiency and commercial delivery across our businesses,' the company said.
Meanwhile, CRH told its AGM today that it would favour a yes vote in the forthcoming Lisbon Treaty referendum. Company chairman Kiearn McGowan said that the European Union had been good to CRH and he pointed to its positive experiences in Poland.
CRH shares closed up six cent at €24.07 in Dublin.
