CRH reports 280% rise in profits
First publishedon www.AggBusiness.com
Irish group CRH has unveiled plans to expand further into emerging markets, while reporting pre-tax profits of €95 million for the six months to June.
The 280% rise compared to the same period last year is accompanied by a 7% turnover increase from €7.7 billion to €8.2 billion.
CRH, one of Ireland's biggest companies, says it plans to buy assets in Russia and expand its presence in China, one of the world's fastest growing economies.
The company could spend up to €1.5 billion on fresh acquisitions without putting its balance sheet or credit rating under threat, with most of the spending likely to go on emerging markets, chief executive Myles Lee hinted. He did not mention any specific targets.
He 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 reorganisation 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."