Building materials and DIY group Grafton has reported that its profits halved in the first half of this year compared with the same period in 2007. The company was hit by the weakening housing markets in Ireland and the UK and the strength of the euro against sterling.
Pre-tax profits were €53.4m, compared with €106.4m a year earlier, as revenue fell 11% to €1.44 billion. Adjusted earnings per share were down almost 50% at 20.6 cent.
Executive chairman Michael Chadwick said the period brought 'the most challenging trading conditions in over 15 years'. The company said there was no immediate sign of an improvement in its markets.
In the UK, Grafton's turnover fell 7.4% to €907.4m, though there was a 6.5% increase when currency movements were stripped out. UK profits fell 24% to €48.6m.
In Ireland, there were sharply reduced volumes in its merchanting business, while falling consumer confidence and poor weather led to weak demand in its DIY chains. Irish turnover fell 16% to €530.5m, while profits plunged 60% to €24.3m. In its retailing business, which includes Woodie's, turnover was down 8% to €154.6m.
The results include a €7m charge for rationalisation measures. Grafton's chief operating officer Leo Martin told RTE radio that the company had reduced staff numbers by a net 300 in the first half. He said it was impossible to say whether there would be further job cuts in the second half.
Grafton has decided to keep its share purchase payment level at 10 cent per share.
Grafton shares closed down 16 cent at €3.84 in Dublin this evening.
