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| CRH anticipates earnings decline Irish-based building materials supplier CRH currently expects to deliver 2008 profit before tax in excess of euro 1.6 billion which would represent a mid-teen percentage decline on the 2007 outcome of euro 1.904 billion. The expected 2008 profit outturn is after an adverse translation impact of approximately euro 50 million principally attributable to a weaker average US$/euro exchange rate of 1.4708 (2007: 1.3705). While the first half of the year saw improved overall operating profit in Europe, mainly reflecting strong growth from our Materials operations in Poland and Ukraine, this was more than offset by declines from American operations. As a result, first half profit before tax fell by euro 64 million or 10% to euro 0.606 billion (2007: euro 0.670 billion). In the second half, unprecedented events in financial markets contributed to an increasingly negative business climate across the world, with the change in sentiment being most marked in our European operations. As a result, CRH anticipates that second half profit before tax will show a high-teen percentage decline on the 2007 outturn of euro 1.234 billion. CRH expects that full year profit on disposals of fixed assets will exceed last year's level of euro 57 million, while the group's share of associates' profit after tax is expected to be slightly lower than 2007 (euro 64 million). write your comments about the article :: © 2009 Construction News :: home page |