Ireland-based CRH, the country’s largest company, has said that a slide in sales will accelerate in the second half of the year. The building materials group said sales are declining in the Europe but gaining in the United States, where in the first six months of 2012 sales grew 20%, recording at €4 billion. A 26% growth was seen in earnings before interest, taxes, depreciation and amortisation (EBITDA), which stood at €216 million.
Ireland-based CRH, the country’s largest company, has said that a slide in sales will accelerate in the second half of the year.
The building materials group said sales are declining in the Europe but gaining in the United States, where in the first six months of 2012 sales grew 20%, recording at €4 billion. A 26% growth was seen in earnings before interest, taxes, depreciation and amortisation (EBITDA), which stood at €216 million.
According to CRH, its US businesses kicked off well in 2012. Sales in Europe registered at €4.6 billion after dropping 5% where bad weather added to other problems. That is not likely to improve in the second half.
For the first half of 2012, group pre-tax profits recorded at €117 million while revenues came in at €8.59 billion. EBITDA fell to €568 million.
US sales rose 8% on a like-for-like basis in the first half but CRH warned the rate of economic growth in the US is tailing off and said second half sales growth will be “well below” the first half.
“We just don’t see how they (the Eurozone) can get their act together in time to have a significant impact in the second half,” chief financial officer Maeve Carton told Reuters.
The company, which moved its primary listing from Dublin to London last year, blamed the depressed Eurozone economy for the fall in sales.
“The big question is whether Germany and some of the economies that are performing well can compensate and continue to deliver growth for the euro zone overall,” chief executive Myles Lee said. “The periodic responses just don’t seem to buy time or inculcate enough confidence.”
The company is seeking to cut costs by more than €2 billion over a five-year period.
