Building materials group CRH today posted a better than expected 37 per cent jump in first half pre-tax profit, adding it was on track for a "healthy" full-year rise despite weakening US growth.
Pre-tax profit at the group rose to €526 million in the six months to the end of June compared with €383 million in the same period last year.
Forecasts had ranged from €501.3 to €513.4 million.
Acquisitions, good weather, firmer European and US demand and an ability to pass on higher energy costs to customers meant revenues, at €8.03 billion, were also comfortably ahead of an expected €7.87 billion and above even the most optimistic analyst forecast of €7.91 billion.
The company said its business outlook was "on the whole positive" despite signs of a slowing US economy.
"While as always risks remain, especially in light of recent international developments, we expect good profit growth in the more significant second half and a healthy advance for 2006 as a whole," Chief executive Liam O'Mahony said in a statement.
CRH Finance Director Myles Lee said, as forecast last month, the company expected profit growth to be slower in the second half of the year when it generates about two-thirds of its profit.
"The first half has been particularly strong," Lee said in a telephone interview. "We would expect some moderation in the second half but still good growth."
Asked about analyst forecasts that the company would post full-year pretax profit of about €1.5 billion this year versus €1.3 billion last year, Mr Lee said: "That doesn't sound unreasonable."
Barry Dixon, analyst at Davy stockbrokers, said he expected to increase his full-year forecasts following the results, however.
"Overall, it appears that European markets are continuing to recover while in the US, strong growth in infrastructure spending is offsetting any impact from a slowing housing market," he wrote in a research note.
Shares in the company, which have fallen about 10 per cent over the last four months amid jitters over a slowdown in US home sales, rose slightly following the results which followed a detailed trading update just last month.
The stock was up 0.6 per cent at €26.33 in Dublin earlier today.
Mr Lee said CRH, which has spent almost €2 billion so far this year on acquisitions, was likely to buy more companies in the coming months despite having confirmed the completion of the biggest deal in its history earlier today.
CRH, which announced earlier this month that it planned to spend $1.3 billion on Ashland Inc's Ashland Paving and Construction (APAC) unit, said it had now completed that deal.