No surprises as pre-tax profits drop to €1.6bn
The figures are in line with market expectations and the mid-teen guideline given by the group in January.
Earnings per share fell 11% to 233.1 cents, but the full-year dividend has been raised 1.5%, to 69 cents which is in line with company policy to reward shareholders better.
“Paying a higher dividend was a key priority for us,” said Myles Lee, chief executive of CRH.
Despite that commitment to a higher dividend payment the payout was less than some forecasters had been expecting.
CRH, the world’s second largest supplier of builders’ materials said the outlook is extremely challenging, with the bottom of the cycle difficult to forecast.
On the plus front the group said falling energy prices, interest rate cuts, and the benefit from the US stimulus package, would provide some succour in a very tough trading environment.
Poor weather in January and February will hurt the first-half performance in the current year with some improvement in the second half anticipated.
CRH’s figures show operating profits fell 12% reflecting a 5% fall in Europe and a 19% drop in the Americas.
Profit on fixed asset sales rose from e57m to e69m and the group expects a similar level of disposals in the current year.
Group operating profit declined e245m or by 12% in 2008.
In Europe, operating profit fell 5% to e1.049bn which accounted for 57% of the total figure against a 19% fall in the Americas to €792m, making up the remainder of the 43% of operating profits.
Europe was generally weaker except for central Europe with Poland in particular helping to contain the slide.
Ireland and Spain were well down on 2007, the group said.
In the Americas profits in the US were 13% down, but the group expects the e27bn stimulus package for highway construction will help.
