CRH has said it expects to see pre-tax profits of over €1.6 billion for 2008 as the building industry remains tough. This compares to profits of over €1.9 billion in 2007 and the prediction is in line with analysts' expectations.
In a trading statement today, the company says the weaker dollar euro exchange rate affected its outcome to the tune of about €50m.
CRH said that the first half of the year saw improved profits in Europe - mainly in Poland and Ukraine. But this was more than offset by declines in US operations. As a result, first half profit before tax fell by €64m, or 10%, to €0.606 billion.
The building materials group said that unprecedented events in financial markets contributed to an increasingly negative business climate around the world in the second half of the year. CRH said this change was most marked in its European operations.
CRH says that the outlook for 2009 is extremely challenging, given the severe impact of ongoing turmoil in financial markets in both developed and emerging economies across the world.
However, it adds that there are some positives, including lower energy costs, the recent interest rate reductions and increasing prospects for a significant US infrastructure stimulus package.
In a separate announcement, CRH said it had spent €273m on 16 acquisitions and investments in the second half of 2008.
The company said the level of spending was a deliberate curtailment of development activity in the light of the deteriorating economic environment. CRH had spent €0.7 billion on deals in the first half of the year.
CRH shares closed up €1.35 at €20.15 in Dublin.
