Building materials firm CRH said today that poor weather and cost cuts would push full-year profit down significantly.
In an interim management statement the group said it expected profit before tax for the year to the end of December to decline by about one-third to between €730 million and €760 million,
CRH said trading conditions on the ground remain extremely difficult, with a like-for-like decline in third quarter sales of 19 per cent reflecting a modest improvement on the 21 per cent fall recorded for the first half of the year.
Group earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter fell by approximately 25 per cent compared with a reported 41 per cent decline for the first half of the year.
Cash flow in the third quarter remained strong, with a €0.9 billion reduction in net debt from €5.1 billion at the end of June to €4.2 billion a tthe end of September. This figure comprised gross debt of €5.5 billion and cash and liquid investments of €1.3 billion.
The company said that benefits from cost reduction measures, as well as more moderate energy-related input costs, had eased the rate of profit decline in the third quarter compared to the first half of the year.
"While trading conditions on the ground remain extremely difficult, our businesses continue to generate strong cash flow and to focus on commercial delivery through ongoing cost reduction and operational initiatives," CRH said in a statement.
"With a strong balance sheet, we are well-positioned to cope with evolving trading circumstances and to take advantage of suitable development opportunities offering compelling value and strategic fit across our operations." it added.
