Investment column: CRH builds on robust results
Wednesday 02 September 1998
Yesterday saw CRH deliver another robust set of results with half-year profits up 31 per cent to Irpounds 85m and a cautiously optimistic statement on the outlook.
CRH has proved adept at pulling off a string of "in-filling" deals and it feels the sharp fall in asset values as a result of stock market declines could help it find more suitable targets. Though it will concentrate in its core markets of Europe and North America, it is also starting to consider South America and Asia as opportunities present themselves.
CRH spent Irpounds 144m on acquisitions in the first half, including Irpounds 80m on a collection of businesses in Britain, France, Belgium and the US. It now has an even spread of aggregates, bricks and distribution businesses across Ireland, North America and Europe.
In the US, market conditions are underpinned by the country's $217bn (pounds 130bn) six-year highways spending bill. This, together with acquisitions, helped profits double to Irpounds 29m. There must be concern about the cycle turning, although CRH seems confident that any downturn will be relatively modest.
In Ireland demand is strong, although more competition could be coming as rivals seek planning permission for more aggregate quarries and European subsidies are likely to fall. Perhaps the biggest concern is Britain, where the company admits that higher interest rates are starting to damp down demand.
On full year forecast of Irpounds 339m the shares trade on a forward multiple of 13 - a decent hold in troubled times.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
musicPolice chief rejects rappers' claims that his work is as dangerous as law enforcement or military service
comedy'Fresh Meat' star sees off stiff competition from Alan Carr, David Mitchell, Graham Norton, Lee Mack and Sarah Millican to win top prize
healthJames Bond's alcohol consumption puts him at 'high risk' of cirrhosis, tremors... and impotence
Beatles rush out 'bootleg' album to defy EU copyright law
Harvey Weinstein reveals his secret weapon on-set
Now that an oil trader's drinking has got him sacked, will we all have to make do with an afternoon latte?
French café starts charging extra to rude customers
Mystery of Epping Forest 'big cat' is solved
North Korea executes Kim Jong Un's powerful uncle Jang Song Thaek for 'attempting to overthrow the state'
Australia incest case: Deformed children found in remote farming community after generations of inbreeding
Fox News presenter tells viewers it is a 'fact' that both Jesus and Santa Claus are white
- 1 French café starts charging extra to rude customers
- 2 Italian court annuls prison sentence for elderly paedophile after 11-year-old victim tells investigators in Catanzaro that she loves him
- 3 Australia incest case: Deformed children found in remote farming community after generations of inbreeding
- 4 Physicists discover 'clearest evidence yet' that the Universe is a hologram
- 5 Fox News presenter tells viewers it is a 'fact' that both Jesus and Santa Claus are white
- < Previous
- Next >
iJobs Money & Business
£200 - £240 per day: Harrington Starr: Client Data Management - City - Brokera...
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...
£30000 - £45000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Pre-Sales / Cl...