GRAFTON CUTS TO COPE WITH DOWNTURN - 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.
Grafton's chief operating officer Leo Martin said the group usually made higher profits in the second half, but he said this year the H2 performance would be 'very close' to the first half.
Mr Martin said the company started the year employing 11,500 people, but 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.
Mr Martin said that house building in the UK and Ireland was currently 'under trend'. He said there would probably be 30,000 new homes built in Ireland this year, but the natural demand between now and 2016 was for 40,000 to 45,000 a year.
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NEWS IN BRIEF AND CURRENCIES - Ferries group Irish Continental, which owns Irish Ferries, has reported an improved performance in the first half of the year, despite a sharp rise in fuel costs. But it is warning that fares for both passengers and freight will have to rise to cope with the higher fuel costs. Underlying operating profits were also up - from €16.4m to €17.3m.
Drinks group C&C, which makes cider for here and the UK, has said its sales for the six months to the end of August will be down by 8% compared with the same period a year earlier.
The euro is worth $1.4741 and 80.63p sterling.
