Building materials group CRH said today its pre-tax profit for last year was expected to be 23 per cent ahead of 2005 and that it spent about €2.1 billion on acquisitions in 2006.
CRH, which is due to publish full-year results on March 6th, said in a trading statement it expected profit before tax in 2006 had risen by about €300 million - slightly more than analysts' consensus forecast.
Analysts currently expect a full-year pretax profit of €1.52 billion, up €240 million on the previous year's €1.28 billion.
Having announced its biggest ever acquisition in August with the $1.3 billion buy of Ashland's Ashland Paving and Construction (APAC)unit, CRH said net spending on acquisitions in 2006 was €2.1 billion.
CRH, which says it has the capacity to spend about €2 billion annually on acquisitions over the next few years, also unveiled two investments in China last year and bought makers of metal building products in both the U.S. and Europe.
"Development momentum in 2006 has been very strong with a total 69 acquisitions," CRH chief executive Liam O'Mahony said.
"This record €2.1 billion acquisition spend will be an important factor in further driving growth across all CRH divisions."
For the coming year, CRH said the outlook for European construction demand was positive and that a decline in house building in the United States, which accounts for less than 10 percent of group turnover, would again have a limited impact.
"Notwithstanding recent US dollar weakness, 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."