Weak Europe hits CRH results
26 February 2013
Construction materials producer CRH reported a 3% rise in revenues for 2012 to €18.7 billion but a fall in net income as weaker results from Europe overshadowed momentum elsewhere.
Net income for the 12 months to the end of 2012 stood at €554 million, compared to €597 million the year before.
Chief executive Myles Lee said, “Results for 2012 reflect progress from CRH’s Americas operations helped by a strong recovery in residential construction and improving overall economic activity in the US. In contrast, our European businesses had to contend with weakening consumer and investor confidence within the Eurozone.”
CRH said that while continued positive momentum was expected in the US economy in 2013, the best outlook for Europe this year would be modest growth. It said 2013 would be another challenging year for its European divisions and it would take significant action to counteract market weakness. This includes targeting group-wide cost reductions of €300 million by 2015.
“Assuming no major financial or energy market dislocations, we expect that on-going improvements in our businesses in the Americas combined with further profit improvement initiatives throughout our operations will outweigh continuing trading pressures in our European segments, enabling the group to achieve progress in 2013,” Mr Lee said.