Strong domestic construction activity keeps CRH optimistic

Dublin-based international building materials group CRH, is to report better than expected full year profits due to strong construction activity in Ireland.

In a statement, the company said that full year pre-tax profits are expected to be in line with the 2002 level of €856m.

This was announced despite a significant adverse currency translation impact - analysts had expected profits to decline by around 4% due to the impact of the dollar's decline.

The group said this was partly due to the continued success of its acquisition strategy that included its largest ever deal, the purchase of Cementbouw for €646m.

Overall, the company spent €1.6bn on acquisitions and investments during 2003.

CRH said that although inclement weather in Europe and the US market - which accounts for about 60% of its sales - had affected business, there had been a substantial recovery in the second half, aided by continuing strong residential construction in Ireland , where a record 65,000 houses were built.