CRH predicts second half upturn
By Steve Skinner06 January 2009
CRH expects that there will be an improvement in ‘sentiment and activity’ in the second half of 2009 as lower energy costs, the step-up in interest rate cuts and an infrastructure focussed stimulus package in the US begin to influence markets.
In a statement CRH said that while these factors were unlikely to offset the ‘negative headwinds’ in the first half of 2009, they should begin to influence sentiment later in the year.
CRH announced its 2009 forecast as it released details of an expected € 1,6 billion pre-tax profit for 2008, a decline on the € 1,9 billion recorded in 2007.
“While the first half of 2008 saw improved overall operating profit in Europe, mainly reflecting strong growth from our materials operations in Poland and the Ukraine, this was more than offset by declines in US operations,” said Myles Lee, chief executive.
“In the second half, unprecedented events in financial markets contributed to an increasingly negative business climate across the world, with the change in sentiment being most marked in our European operations,” continued Mr Lee.