Poor weather in the United States and the weak dollar will dampen CRH's annual profits by as much as 10 per cent, the company said today in its latest trading statement.
CRH said it expects to report pre-tax profit in the range €155 million to €160 million for the six months to June 30th compared with a figure of €196 million for last year. Currency translation effects will account for nearly €10 million of this reduction.
For the year, CRH said although profits in local currencies will be ahead of last year, the weak exchange euro/dollar rate will lower profits in euro terms.
In Ireland, CRH said residential construction has been particularly buoyant. Activity on major infrastructural projects under the National Development Plan has continued, with a number of major projects nearing completion.
CRH's British operations have also been adversely affected by the strength of the euro. Sterling was on average 9 per cent weaker against the euro in the first half of 2003, leading to a fall in sterling profits.
In its key US market, CRH said the combination of bad weather and weak dollar should weigh on first-half profits. The average dollar translation rate for the first half of 2003 is $1.105 to the euro, compared with $0.8979 in the first half of 2002.
In it outlook statement CRH said that although markets are likely to remain difficult for the rest of 2003, it anticipates underlying second-half activity will be broadly similar to 2002.