Materials supplier says earnings will be 10% lower than last year because of unexpected slowdown in US
Construction materials group CRH has warned that full year profits are likely to be lower than expected, due to the worsening economic climate in the US.
It said earnings before tax, interest and amortization (EBITDA) for the group are likely to be 10% down on last year’s £1.8bn, compared to previous forecasts it would increase its profit.
CRH chief executive Myles Lee said economic indicators in Europe had been more encouraging. But he added: “Concerns relating to the recovery in the United States have increased with a continuing flow of disappointing economic data.”
“Our Americas Materials business has experienced weaker than expected volumes and more competitive pricing due to lower than anticipated levels of commercial construction and pull-backs in state and municipally funded projects. As a result second half US$ profitability in Americas Materials will be lower than last year compared with our previous estimate of an improved second half outturn.”
CRH made the announcement as it reported half year results showing pre-tax profit down 77% to £20.57m, on revenue of £6.33bn, down 8% on 2009.