The first week in September marks the end of summer as schools reopen and businesses get back into full swing after the holiday recess. It is one of the busiest periods of the year in the Irish stock market as a long list of companies announces its financial results for the first half of the year.

Already, several key companies have reported their preliminary results for the half-year. These include: Grafton Group, First Active, CRH, Kerry Group, Glanbia, Jefferson Smurfit, Waterford Wedgwood and Independent News and Media. In general, corporate results have been good and it is quite clear that the booming Irish economy is feeding through into rising corporate profitability.

This is most apparent in the construction sector, which is growing at a rate of approximately 10 per cent per annum. The two Irish construction related companies to report recent results - Grafton Group and CRH - produced figures that were well ahead of market expectations. The table summarises the key figures for both company's results. The booming Irish construction sector has certainly underpinned the excellent performance from both Grafton and CRH. However, the international operations of these companies also performed very strongly. CRH, which has become an internationally diversified building materials company, saw a good performance from virtually all its major markets.

Grafton Group is more narrowly focused on the Republic and has only expanded overseas through major British acquisitions in recent years. This strategy would seem to be paying off as the Group's profits from its British operations trebled compared with the same period last year.

The medium-term outlook for both these companies going forward seems very positive. Already, stockbrokers have revised up their profit forecasts in both cases. For example, profit forecasts for this year and next year at Grafton Group have been revised up by more than 10 per cent.

The Irish operations of both CRH and Grafton seem set for at least another two to three years of strong growth.

Public spending on improving the State's creaking infrastructure will be a buoyant source of demand for many years with expenditure on the transport infrastructure likely to be maintained at a very high level for many years. The housing crisis points to the likelihood that the current rate of housing output of close to 50,000 units per annum is also likely to be sustained for a number of years.

As far as international markets are concerned the picture is also generally very positive. The continental European and British economies are improving, and in particular the British property market has strengthened considerably over the past year. The US market, which is very important to CRH, also remains very strong.

Not surprisingly the share prices of both of these companies have responded positively to their good results and their prospects for the future. The very strong operating environment in the construction and building materials sectors, in which both these companies operate, and the quality of their respective managements, augurs well for the long-term prospects of their respective shareholders.