CRH announces €1.76bn in profits

Building materials group CRH saw its before-tax profits surge from €1.3bn in 2005 to €1.76bn last year, the company announced today.

The profits are set against a background of €18.7bn in revenues at CRH last year.

The company said the performance was achieved despite higher input costs and declining US residential construction. Total operating profit for the Americas operations improved 33% to €953m.

Total operating profit from CRH's European operations improved 20% to €814m after net non-recurring charges of €12m. Materials saw full year operating profits of €421m, an increase of 12%.

CRH boss Liam O'Mahony said: "2006 was another year of delivery by CRH both in development, with a record acquisition spend, and operationally, with record organic growth and strong improvements in all key financial performance measures.

"Cash generation remains robust and with comfortable interest cover, the group can accommodate a higher level of dividend payout while continuing to take advantage of a strong development pipeline.

"With an ongoing focus on price and cost effectiveness across our operations, further benefits from the record 2006 acquisition spend and a sustained emphasis on development, we expect to achieve further progress in the year ahead."