CRH pretax profits down 55%

Building materials giant CRH has reported full-year operating profit down 48 per cent for fiscal 2009.

The company announced today that operating profit for the year ending December 31st totalled €955 million as against €1.8 billion for fiscal 2008.

Pretax profits totalled €732 million for 2009, down 55 per cent from the €1.6 billion recorded a year earlier.

Revenues were down 17 per cent from €20.8 million to €17.4 million, while earnings before interest, tax, depreciation and amortisation declined 32 per cent from €2.65 billion to €1.8 billion.

Profit before tax and impairment charges of €773 million was 53 per cent below fiscal 2008 but ahead of the guidance of €750 million provided in the group's January 2010 trading update.

Earnings per share fell 58 per cent to 88.3 cents, and the company said it is recommending a final dividend of 44 cent per share.

CRH spent €0.46 billion in 2009 on 17 acquisitions which included a 26 per cent stake in Yatai Cement.

Net debt reduced to €3.7 billion during the year as against €6.1 billion in fiscal 2008.

The company said construction activity in Ireland fell steeply during the year with cement volumes were down 45 per cent in 2008 levels. It said the residential and commercial sectors reduced further, and the overall decline in sales volumes, together with the impact of the rationalisation costs, resulted in lower margins and an operating loss.

"Residential and non-residential markets declined during 2009 in both Europe and the US, with government-funded infrastructure investment only partially compensating,” said CRH chief executive Myles Lee.

“We expect a difficult demand backdrop through much of 2010 with continuing declines in non-residential activity across our markets not helped by a poor start to the year as a result of prolonged severe weather in Europe and North America during January and February," he added.