CRH shares tumble as bad weather hits the bottom line
Shares in construction materials giant CRH tumbled this morning after it predicted its first-half profits will be much lower than had been forecast by analysts.
The company, which holds its annual general meeting in Dublin at 11am, said that its operations in Europe since the beginning of the year were hit by “prolonged winter conditions” which extended through March and up to mid-April.
“Combined with a challenging economic environment, this had a significant impact on construction in our major markets,” it said, adding that cumulative sales in the first four months were about 12pc behind the comparative period last year.
In the US, cold and wet weather has also impacted operations. CRH said that as a result, and despite the improving trend in overall construction activity, like-for-like sales in its Americas business were 2pc lower than in the first four months of 2012.
CRH, headed by outgoing chief executive Myles Lee, expects to deliver first-half profits of about €400m. That’s 17pc below the figure generated in the first half of 2012 and substantially below the €579m that had been expected by analysts.
Shares in the company were 3.5pc lower in Dublin this morning.