CRH deadline for bids on firms passes

THE DEADLINE for bids for building materials group CRH’s European insulation businesses passed yesterday.

The company announced last March that it was planning to sell these operations, which are part of its overall European products division.

CRH said that it made its decision following “rigorous strategic analysis”.

The company also pointed out that operating profits in its insulation businesses were suffering as a result of the overall fall in house building in Europe.

Operating profits in the European products division, of which the insulation businesses form a part, were down almost 50 per cent last year at €116 million from €124 million in 2008.

Commenting on its decision to sell, the group said that the individual companies involved were not leaders in their specific markets, and it added that there was a likelihood that their raw material costs could increase in line with oil prices.

The European insulation businesses are spread across six countries and include Thermisol in Scandinavia, Ecotherm in Britain, and Unidek in the Netherlands and Germany.

The company made no comment on the bidding process yesterday.

CRH is due to report results for the first six months of the year next week. Profits are expected to be flat while earnings before interest, tax and write-offs are likely to have fallen.

Trade was slower than usual during the opening months of the harsh winter in both Europe and the US.

CRH closed 3 per cent down at €13.89 in Dublin yesterday.