CRH'S 2011 REVENUES UP 5% - Building materials group CRH has reported a rise in operating profit of 25% to €871m, while profits before tax rose by 33% to €711m. Revenues climbed by 5% to €18.081 billion. In its results statement this morning, the company says that problems in the banking sector are are contributing to the current uncertainty for growth outlook for Europe in 2012.
CRH's chief executive Myles Lee says the market in the US has been tough for some years, but a continuing flow of improving economic news is coming from there during the last few months. He says the company has significant acquisition capability, not just for deals in the US but also in Europe and developing countries. He says key areas for CRH this year will be Poland and Ukraine, where one of the company's big initiatives is a major new cement plant. He also says that CRH managed to double its profits in its Chinese operations, while it also made good progress in India.
CRH moved its main listing from Dublin to London last year and Mr Lee says that the move is a long term strategy to get the company more exposure. He says the move made sense as over the year's the bulk of the company's trading had moved from Dublin to London. He says investors like the option of being able to trade in both euro and sterling and added that CRH will remain headquartered in Ireland.
On Ireland, Mr Lee predicts another tough year in the construction sector and said that the Irish operations now account for just 2% of the group total.
***
AER LINGUS SAYS FUEL BILL MAY RISE BY €60M THIS YEAR - Aer Lingus today said that its operating profit for 2011 came to €49.1m, a fall of just over 6% compared to €52.5m the year before. 2011 revenue was 6% higher at €1.28 billion. Passenger numbers increased by 1.8% to over 9.5 million. The airline's statement mentions higher fuel prices and airport charges as problems, rising by 32% and 11.7%, respectively, over the year before.
Christoph Mueller, Aer Lingus chief executive, says that sustained high fuel prices are a problem for the entire airline industry and not just Aer Lingus. He says that the airline has hedged considerably on its fuel for this year but warns that the Aer Lingus fuel bill will rise by €60m this year.
The deficit on the IASS staff pension scheme in the airline comes to about €700m at the end of 2011. if the pension issue were to cause problems, like strikes, Mr Mueller says any kind of industrial action would have a significant impact on the airline.
On the possible sale of the Government's 25% stake in Aer Lingus, the CEO says the amount the sale could raise would depend on the airline's share price, which has risen by 60% over the past six months and is near the €1 level earmarked by the Government as the lowest threshold for such a move. He says the Government is a passive shareholder and the sale of its stake would improve the airline's share liquidity as it had always suffered from having two big shareholders - the Government and Ryanair.
***
MORNING BRIEFS - A survey carried out by property website Daft.ie of more than 2,000 people, about their attitudes to buying property, found that almost four out of 10 intend buying this year. But most will wait for two years or more, and others intend to keep renting property. The majority of those surveyed by Daft.ie were renting houses or apartments, with owner-occupiers making up the next biggest group. The attitudes survey found that the availability of mortgage credit was considered the most important factor affecting house prices this year. Other issues they mentioned included unemployment and economic growth.
*** The IMF is to release another €3.23 billion in loans to Ireland following a review of the bail-out programme. The Fund said the latest loan brings the total loaned to Ireland by the IMF since the start of the bailout to more than €16 billion.
*** On the currency markets the euro is trading at $1.3438 cents and 84.8 pence sterling.
