Strong growth in its four geographical areas pushed CRH's profit before tax up by 55 per cent to €635 million (£500 million) in 1999. The results are better than brokers' predictions and follow record spending of £1.5 billion, most of which was directed at acquisitions.
CRH had the benefit of a once-off gain on the disposal of Keyline Builders Merchants, partly offset by a write-down in the carrying value of Premier Periclase.
Excluding these exceptionals, the profit figure falls to €571 million, a 40 per cent increase. The results also benefited from a favourable currency exchange translation of €13 million, due to the strength of sterling and the dollar.
Organic growth accounted for 55 per cent of the profit rise, with acquisitions responsible for 40 per cent. The figures were helped by strong markets in Ireland and the US, and improving markets in Britain and mainland Europe.
Group sales rose by 29 per cent to €6.7 billion (£5.3 billion). Basic earnings per share, excluding exceptionals, rose by 35 per cent to 106.51 cents and a final dividend of 14.10 cents has been declared, making a total of 20 cents, an increase of 17 per cent. Sales in the Republic rose to €599.8 million from €540.9 million, while trading profit increased to €114.7 million from €102.6 million.
It benefitted from volume growth of 10 per cent in construction output and an increase of 16 per cent in housing construction. However, lack of serviced land and planning delays constrained output growth in the Dublin market to only 2 per cent. The competitive market led to maintained margins though profits were up. Premier Periclase had a "difficult year".
Sales in Britain and Northern Ireland increased to £847.6 million from €770.2 million while trading profit grew to €59.6 million from €36.9 million, reflected the profit on the sale of Keyline. Deliveries in the British brick market were unchanged and Ibstock focused on reducing costs. Forticrete showed further improvement and "early synergies" have already been realised from the integration of Ibstock's stone walling and masonry business. Profits at Combat Polystyrene suffered from closure costs.
In Northern Ireland, Farrans increased sales by 10 per cent in a difficult pricing environment but profits increased. Sales in mainland Europe increased to €1.58 billion from €1.14 billion and trading profit to €104 million from €65.9 million. CRH has described market conditions as neutral to positive. The distribution business in the Netherlands "scored good advances, with profits ahead". In France, the co-operation between Materiaux Service and Raboni "developed most satisfactorily" with double digit sales and profit gains. The concrete products group "struggled to match the excellent performance of the previous year".
In the Netherlands, the clay products group "encountered increased price competition". In the building products group, Heras Fencing "enjoyed a better year with significantly higher profits". In the Europe material division, volume and price improvements in Beton Catalan in Spain "added 12 per cent to sales revenue, delivering better margins and financial returns". In Finland, results for Finnsementti/Rudus were better than expected. Results from Poland were positive.
Operations in the Americas now account for 55 per cent of group sales and 58 per cent of trading profits. Sales in the area grew to €3.7 billion from €2.8 billion, while trading profit advanced to €385.1 million from €246.4 million.
In South America, Canteras Cerro Negro in Argentina "performed well and profits were ahead". The operating results from Vidrios Dell Orto, the leading glass fabricator in Chile, in which it took a 50 per cent stake, performed in line with expectations.
