Irish building materials company CRH has warned that demand has fallen in its main markets in recent weeks, adding it expected tough trading conditions for the first half of next year.
CRH said in a trading statement it expected annual pre-tax profit between € 760 million and € 790 million for 2001 - up from € 697 million last year but below consensus forecasts for a figure around € 800 million.
"Despite the current difficult and uncertain outlook we are confident that CRH's balanced geographic, sectoral and product spread will underpin our performance and form a sound basis for future progress," chief executive Mr Liam O'Mahony said.
He added the company was taking necessary cost reduction measures, and emphasised its cash flow and balance sheet remained strong.
CRH said that initially, its US operations had not been significantly affected in the aftermath of the September 11th attacks on the United States.
However, in recent weeks declining consumer confidence, increasing job lay-offs and security fears had led to a softening in demand patterns - particularly in the residential and non-residential construction sectors, it said.
European operations had also been impacted. Countries in which CRH has a presence include Germany, Spain, and Poland.
The company said strong infrastructure programmes would underpin activity in its major markets but may not compensate fully for weakness in private sector construction.