Building materials group Grafton said its earnings fell in the first-half of the year, but added that it was well placed to deal with challenging trading conditions in Ireland and the UK.
In a trading update this morning, Grafton said group turnover in the six months to end June fell to €1.4 billion from €1.6 billion the same time last year.
'The group remains confident about the long-term fundamentals and underlying value of its businesses in the UK and Ireland,' the statement added.
Overall sales in Ireland were down 16% in what the group called a 'challenging market'.
It said its Irish merchanting and repair and maintenance sector did well, and helped to reduce the impact of the slowdown in new build. It added that the pace and depth of the slowdown in housebuilding in Ireland was much faster than expected.
Grafton said that while there was a fall in UK sales in May of 4.5%, its UK business is resilient, as it sells mainly into the repair and maintenance sector, rather than new homes.
'The group has entered the second half of the year in a strong financial position with a reducing cost base and a profitable and cash generative business which is well placed to deal effectively with a challenging trading environment in the UK and Ireland at a time of continued uncertainty in the credit markets,' the company said.
Shares in Grafton group closed down 18 cent at €2.88 in Dublin.
