CRH shares soared by €1.30 to €21.20, after reaching a high of €21.30, following the release of bumper interim results. The 6.5 per cent gain in the share price has increased CRH's equity market capitalisation by €507 million (£399 million) to €8.3 billion (£6.5 billion).

The market was responding to the strong growth in all CRH's main geographical areas which pushed its profit before tax and extraordinary items up by 46 per cent to €158 million (£124 million) in the six months ended June 30th, 1999. The strongest percentage growth came from the group's operations in Britain and Northern Ireland, and the Americas (US and South America). The contribution from acquisitions accounted for about 20 per cent of the profit growth but the majority, some 80 per cent, was organic growth.

CRH also had the benefit of a profit of €79.6 million from the sale of its British building products company, Keyline Builders Merchants, which was partly offset by a write down in the carrying value of fixed assets of Premier Periclase which incurred a loss in the first half. The exceptional gain pushed the pre-tax profit up to €222.4 million, representing a gain of 105.5 per cent.

Basic earnings per share rose by 39.9 per cent from 21.20 cents to 29.65 cents. The interim dividend is being raised by 16 per cent to 5.90 cents. The dividend cover has now widened from 4.1 to 5.0.

Group sales grew by 25 per cent to €2.86 billion. Profit margins (before exceptionals) have widened from 4.7 per cent to 5.5 per cent.

A breakdown of sales shows a rise in sales in the Republic from €248.7 million to €275.8 million, an increase in Britain and Northern Ireland from €383.5 million to €510.8 million, growth in mainland Europe from €546.3 million to €665.4 million and a gain in the Americas from €1.1 billion to €1.4 billion.

Trading profit from the operations in the Republic increased from €40.4 million to €49.8 million. However, the one black spot was Premier Periclase which was hit by weak demand and pricing and this led to the halting of production from May to early August to avoid excess stocks.

Nevertheless, elsewhere in the Republic there were good volume increases for cement, concrete products and basic materials despite competitive pricing. Reflecting higher volumes, Irish Cement profits increased. In the comparable half in 1998, production was disrupted because of the installation of the new grate cooler at the Platin plant.

Trading profit in Britain and Northern Ireland more than doubled from €17.4 million to €36.8 million. Ibstock which was acquired had a better performance despite lower brick volumes. As part of the integration, Ibstock's corporate head office was closed at the end of May.

The Forticrete concrete masonry and roof tile business had better results and these were integrated with Ibstock's stone walling and masonry business. In Northern Ireland, Farrans had "improved results", CRH said, but "pricing remains difficult".

Trading profit in mainland Europe increased from €33.5 million to €39.5 million. Reviewing these operations, CRH said trading patterns were mixed with the Dutch distribution and fencing activities recording better profits but the concrete and clay operations were "impacted by over capacity and by increased competition".

The French operations "improved" and in Belgium, Marlux's profits "advanced strongly". In contrast, profits from its German clay products operation were lower. The recovery in Spain continued "resulting in a significant rise in profits". In Poland there was a "substantial profit advance" due to higher volumes and improved cement pricing. Trading profit in the Americas jumped from €37.9 million to €68.1 million. Profits from the Oldcastle operation in North America "advanced strongly helped by favourable weather and the first-time inclusion of Ibstock's Glen-Gery brick division". The precast group benefited from further strong profit growth in its Californian operation. The Architectural Products Group benefited from favourable demand. The materials group "enjoyed a good start in the traditionally lossmaking first half". The glass group enjoyed higher profits despite greater competition and higher raw glass costs. The distribution group "met expectations in the seasonally quieter and less profitable first half".

In Argentina, the economy was hit by problems in Brazil. However, despite a fall in sales, Canteras Cerro Negro generated higher profits.