CRH bullish as its profits beat forecast
BUILDING materials group CRH said yesterday that full-year profits came in ahead of forecasts for its debut results as a FTSE 100 company.
CRH said the outlook for 2012 is positive despite rising energy costs and a weaker economic picture in Europe.
The Irish company is strong in the US, where it is the major producer of asphalt for highways.
CRH, which moved its primary listing to London from Dublin at the end of last year, posted a 33 per cent rise in pre-tax profits to €711m (£602m) in 2011.
The relatively warm weather at the end of the year contributed as building projects were not hampered by poor conditions.
Market expectations had been for a pre-tax profit of between €588.1m and €733m. Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at €1.65bn, ahead of its forecast in November of approximately €1.6bn.
“The final weeks of the year gave us a good strong finish and allowed us to be a little bit ahead of the guidance,” said financial officer Maeve Carton.
The group, which reported a five per cent rise in sales, said a recovering private construction market in the US will help offset rising energy costs that are driving costs 10-15 per cent higher.