Building materials group CRH has said that the rate of decline in group sales has moderated with like-for-like third quarter sales down 4% compared with last year.
In an interim management statement, the company says this follows the 10% fall recorded for the first half of the year and brings the total rate of decline in underlying sales to 8% for the nine months to the end of September.
Together with continuing benefits from the company's ongoing cost reduction measures and the sales trend, CRH says the rate of profit decline has also eased.
It says that third quarter group earnings before interest, tax, depreciation and amortisation amounted to €0.7 billion. This compares to €0.75 billion the same time in 2009.
The company said it expects the rate of decline in sales to continue to moderate in the last three months of the year and it is predicting earnings of about €0.4 billion for the final quarter of the year, assuming normal weather patterns for the rest of the year.
It added that it expects full year earnings of about €1.6 billion for 2010, in line with earlier predictions and down from the €1.8 billion reported in 2009.
CRH said that it expects profits on disposals for the year to be more than double last year's figures and it anticipates that full year pre-tax profits will come in at between €0.62-0.65 billion.
The construction supplies group said in August that earnings would drop 10% this year after weak commercial construction and postponements of US state and local spending put sales behind expectations in the typically busy months of July and August.
CRH buys more of Germany's Bauking business
CRH also said this morning that it has reached a deal to buy another 50% of the Bauking distribution business in Germany for €126m. CRH had bought its initial 48% joint venture share in the company in 2005.
The company is the leading builders merchant and DIY operator in Northern Germany and now has a total of 128 branches and generated earnings of €35m on sales of €747m last year.
CRH shares closed up 4.4% to €14.46 in Dublin this evening.
