Building materials group CRH expects the trading environment for the remainder of 2002 to be challenging, particularly against a background of higher prices for oil and related products.
The company has spent €378 million on acquisitions "to date in 2002", the annual general meeting heard yesterday. CRH has also completed a 10-year $1 billion (€1.1 billion) global bond issue which, combined with the benefits of a €1.1 billion rights issue last year, gives it a $2 billion war chest to avail of further acquisition opportunities as they arise.
Speaking at the company's a.g.m. yesterday, chairman Mr Pat Molloy said first-quarter volumes of most products in Ireland declined compared with the very strong trading levels of the first three months in 2001.
"Housing and commercial demand was lower, while activity levels on major infrastructure projects under the National Development Plan were somewhat slow in gathering momentum. However, April has seen an improvement in demand," he said.
Chief executive Mr Liam O'Mahony said there had been a significant uptake in interest on the investment side of the market. "We see this year in Ireland certainly being more back-end loaded. Last year, we were very strong in the first half, slowing through the second half, and the first half of this year continuing at that level, picking up into the second half," he said.
In North America, early season activity levels for its materials division reflected good demand in the north-east but was offset by weaker demand in the west, CRH said.
Trading in the central region had been in line with expectations. It said the first-time inclusion of winter losses for Mount Hope Rock Products, acquired in April 2001, and Hallett Materials and Des Moines Asphalt, acquired in July 2001, would have an impact on the US materials division's results for the first half of the year.
In its products and distribution group, CRH said its precast group continued to suffer from weakness in the telecommunications markets and more competitive conditions in its structures division.
Activity levels in Britain, although still subdued, showed modest growth, while trading patterns in mainland Europe were subdued, CRH said.
