Profits rise at CRH

Interim results reveal substantial increase in CRH’s pre-tax profit for first six months of 2011

CRH plc, the Dublin-based international building materials group, have reported a substantial increase in pre-tax profit, up 280% to €95 million, for the six months ended 30 June 2011, compared with the first half of 2010 (€25 million).

Turnover in the first half of 2011 was up 7% to €8.1 billion, compared with the same period last year (€7.6 billion), while EBITDA rose 10% to €574 million (€520 million).

Meanwhile, CRH’s net debt at 30 June 2011 was down 17% to €3.9 billion, compared with €4.7 billion at the same time last year. Cash spend in the first six months amounted to €163 million, while proceeds from disposals amounted to €392 million.

CRH said the increase in profits in the first six months of 2011 was largely driven by the group’s Products and Distribution operations in Europe and the Americas.

Commenting on the results, chief executive Myles Lee said: ‘The positive outcome for the first half of 2011 clearly demonstrates the advantages of CRH’s product and sectoral end-use balance, and the benefits of the extensive reorganization and restructuring measures implemented in response to the exceptionally difficult markets of recent years.

‘Looking to the second half, downward revisions to economic growth estimates over recent months, combined with the extreme turbulence evident in world financial markets over the past few weeks, have added to market risks and uncertainties.

‘Against this background we continue to focus on operational and commercial excellence, on delivering the price increases necessary to recover higher input costs in our businesses and on delivering a year of progress for CRH in 2011.’