CRH cautious on timing of sustained pick-up

CRH cautious on timing of sustained pick-up
Published: 05 January 2010

Irish-based CRH said the timing of any sustained pick-up in developed markets this year was unclear despite recent positive news flow.

CRH, which said on Tuesday it would make more cuts this year than previously indicated, gave a more cautious outlook than rivals, saying that while it was well-positioned to respond to evolving demand patterns, trading conditions remain difficult.

Lafarge said in November that recovery would come to developed markets in the second half of 2010.  Holcim also said late last year that stimulus programmes were set to return North America to growth in the second half of 2010.

CRH, meanwhile, also expects to benefit from projects funded by the US government’s US$787bn.

The Dublin-based group said it saw an easing in the rate of profit decline in the second half of 2009 but expected full-year 2009 profits to fall by 55 per cent to around EUR750m broadly in line with previous estimates.

CRH said in November it would make a larger than anticipated dent in its 2007-2010 cost-cutting plan and increased its target by EUR200m, projecting that savings of EUR1.65bn would be achieved by the end of the year. (Edited report from Reuters).