CRH profit decline eases in third quarter

CRH plc, the Dublin-based international building materials group, said trading conditions in their businesses remained difficult in the third quarter of 2009 with a like-for-like decline in Group sales of 19% reflecting a modest improvement on the 21% fall recorded for the first half of the year.

In addition, benefits from cost-reduction measures, combined with more moderate energy-related input costs than in the equivalent months of 2008 and less-demanding comparatives, resulted in an easing in the rate of profit decline in the third quarter of 2009 compared with the first half of the year.

Group earnings before interest, tax, depreciation and amortization (EBITDA) for the third quarter declined by approximately 25% compared with a reported 41% decline for the first half of the year.

However, CRH warned that poor weather in a number of markets in October combined with anticipated further costs associated with the implementation of additional efficiency and restructuring measures were likely to result in a percentage EBITDA decline for the final quarter of 2009 in excess of that recorded for the third quarter.

Against this backdrop, the company now expects to report a full-year EBITDA decline of approximately one-third (2008: €2,665 million) with a pre-tax profit of between €730 million and €760 million (2008: €1,628 million).