Competition hits Readymix as shares fall 50%

PROFITS at mixed concrete maker Readymix fell by almost 50% as intense competition in the company’s core sector intensified in 2004, despite the ongoing building boom.

Rival CRH have also see profits margins in the sector erode but the company plan to increase cement prices by 7% which will put further profit on margin in the mixed concrete sector.

Merrion Stockbrokers analyst John Mattimoe said: “The decline reflects very competitive market conditions in downstream construction materials (concrete) in Ireland, which also impacts the ability of operators to recover higher input costs. We have factored in competitive downstream market conditions into our forecasts for CRH’s Irish operations, which are partly offset by the performance of its upstream businesses,” he said.