Pre-tax profits rise 22% for building materials firm

Pre-tax profits at CRH rose 22 per cent to #697 million (£548.5 million) last year after goodwill amortisation, it said yesterday.

Revenues at the building materials group grew 32 per cent to #8.87 billion in the 12month period. It reported a 34 per cent rise in trading profit to #888 million after goodwill and said post-goodwill earnings per share were 124.92 cents.

The group also revealed plans to raise more than #1.1 billion through a rights issue.

Its chief executive, Mr Liam O'Mahony, said the group would maintain its strategic and sectoral balance going forward.

He forecast a "strong year" in the domestic market where residential, commercial and industrial demand was still buoyant. Sales last year in the State rose 12 per cent to #671 million while earnings before interest and tax rose 21 per cent to #139 million.

In Britain and Northern Ireland, however, Mr O'Mahony said the outlook was relatively flat due to high energy costs. Revenues there fell 18 per cent to #698 million and earning before interest and tax fell 6 per cent to #56 million.

Mr O'Mahony was "generally positive" on the prospects for CRH's European operations in the current year, except in the German market. Its European sales last year rose 29 per cent to #2.03 billion, while earnings before tax and interest gained 54 per cent to #160 million. Its acquisition of the Dura group last November, which will cost #268 million net of disposals, had only a minimal impact last year.

In the Americas, he said the group would continue to focus on cost reduction. CRH recorded lower earnings margins last year in that region due to poor weather and increased energy costs. Group sales in the region rose 48 per cent to #5.47 million while earnings before interest and tax rose 39 per cent to #533 million.

Mr O'Mahony said the group's chairman, Mr Tony Barry, had not appeared before the High Court Inspectorate investigation of the Ansbacher affair "in his capacity as chairman of CRH". The group was linked to the secretive scheme in a report by authorised officer acting for the Tanaiste, Ms Harney, which led to the creation of the Inspectorate, whose inquiries continue. Mr O'Mahony claimed: "This is old news. It's really not an active thing. CRH had no hand or part in any wrongdoing."