CRH sees profits advance for 11th consecutive year

Construction and building materials group CRH today announced record results for 2003, despite adverse currency translation effect, indicating a total 2003 construction output in Ireland similar to 2002.

Sales for the group increased by 2% while operating profit of €130m was broadly in line with 2002 levels.

Operating profit in Britain and Northern Ireland increased by 13% in local currency terms, while reported profit of €57m was 3% ahead of last year.

In mainland Europe, CRH said that construction output remained relatively flat in most markets other than Spain, which continued to grow strongly.

CRH's materials division showed operating profits rise by 6% to €133m.

Profits for the legacy Products & Distribution businesses improved and, with the benefit of significant current and prior year acquisition activity, operating profits increased by 55% to €166m.

In the Americas materials division, both improved pricing and the incremental impact of 2002 and 2003 acquisitions offset the combined effect of continued high energy costs and record wet weather in key regions, to give an operating profit up 4% in US dollar terms.

CRH attributed the benefit of significant acquisitions in the products and distribution division to achieve a 10% increase in US dollar operating profits in spite of the wet spring and a weak commercial construction sector.

Overall results for the Americas were 7% ahead in US dollar terms, operating profits translated into euro were adversely affected by a 16% strengthening of the euro versus the US dollar, and at €559m were 11% lower than 2002.

Total acquisition and investment activity spend amounted to €1.6bn on 41 deals, matching the record spend in 2000.

CRH is headquartered in Dublin, with operations in 23 countries.

Chief executive, Liam O'Mahony said: "In 2003 the CRH team worldwide responded strongly to tough and changing circumstances and again delivered performance and growth. Group profits advanced for the eleventh consecutive year.

"While risks and uncertainties remain and economic growth in Europe is generally subdued, the economy in the US is recovering and we are poised to move forward as markets improve."