The market has warmly endorsed CRH's results by pushing the shares up by 65 cents to €18 (£14.18). Will its future earnings justify this endorsement?

The key to CRH's success, to date, has been its two-pronged growth strategy - underlying core growth plus acquisitions. To maintain the momentum, it needs both. On the acquisition front it has already started the year well with the purchase of Shelly Company, an Ohio-based aggregates group, for $362 million (€376 million). More acquisitions are likely, together with plenty of add-ons. CRH says parts of Tarmac would fit in well with the group in the US but there is "nothing particular happening". The group is optimistic that underlying growth can continue. The domestic market, which is continuing to benefit from booming construction activity, will continue to provide useful growth.

The seven-year National Development Plan will ensure continued growth for some time and make up for part of any downturn that might eventually come to the housing market.

In Europe, forecasts for the construction industry are positive although product over-capacity is a concern. Most of the absolute growth should continue to come from the US operations. However, CRH says rising interest rates should "sound a cautionary note".

Modest growth in construction activity is forecast.

Overall, 2000 should be another positive year for CRH. Going on its record, and the acquisition already made, earning per share should rise from 106.5 cents to more than 125 cents, representing a credible 17 per cent increase.