CRH to post E1.9bn full-year profit

CRH to post E1.9bn full-year profit
02 January 2008

CRH is likely to post a pre-tax profit of around E1.9 billion for the full year 2007 when it reports tomorrow, a Davy Research note said today.

Davy is forecasting E1908.6m, 19pc ahead of 2006 and approximately one per cent ahead of consensus estimates.

Of this, approximately 7pc is organic with the balance coming from acquisitions completed in 2006 and 2007, Davy said.

However, Davy is predicting losses at key US division due to the US sub-prime crisis and the slump in domestic housing.

"We are forecasting a 5pc drop in profits in the Americas Products division with a 29pc decline in operating profit in the Americas Distribution division. These two divisions are most exposed to the US residential
market," it said.

"Of more interest than the 2007 out-turn, however, will be the outlook for 2008. Traditionally this is a short comment, but it will be interesting to see how each of the divisions performed into the end of the year. Of
particular interest will be activity levels in European markets, especially in Western Europe," it said.
Published under Cement News