AGM Statement
CRH PLC
8 May 2002
CHAIRMAN'S AGM UPDATING STATEMENT
ANNUAL GENERAL MEETING - 8th MAY 2002
The broad trends experienced to date in our various operations are very much in
line with the outlook statement accompanying the announcement in March of our
2001 results, and we expect that the trading environment for the remainder of
2002 will be challenging, particularly against a background of higher prices for
oil and related products. Nevertheless, we are confident that the development
moves completed to date, together with our relentless internal emphasis on cost
efficiency, overhead reduction and cash flow generation, will result in 2002
being another year of progress for the Group.
In Ireland, in line with the slower trends experienced in the second half of
2001, first quarter volumes of most products 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,
the month of April has seen an improvement in demand particularly reflecting a
rise in housing activity following recent Budget measures.
In Britain, activity levels to date, while still subdued, show modest growth.
Ibstock Brick volumes have improved and further price increases are being
implemented. The Northern Ireland market remains competitive with good activity
levels in civil engineering and road maintenance offset by a weaker commercial
market.
In Mainland Europe, trading patterns have been mixed. Our Materials operations
in Spain have started the year strongly and in Switzerland cement demand
continues to benefit from large infrastructure projects. Activity in Poland
remains weak with as yet no clear direction as to the likely trends for 2002 as
a whole while in Finland demand is slightly behind last year's levels. In the
Products and Distribution Division, our concrete, clay and building products
businesses continue to be constrained by general weakness in residential markets
in the Benelux, France and Germany. However, our Distribution operations have
started the year well supported by strong demand and margin improvement in our
DIY retailing operations in the Benelux.
In North America, early season activity levels for the Materials Division
reflect generally good demand in the Northeast, offset by weaker trends in the
West. Trading to date in the Central region, which encompasses Pennsylvania,
Delaware, Michigan, Ohio and West Virginia, has been in line with expectations.
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) will impact the US Materials Division's outturn for the first half of the
year. In our Products and Distribution Division, the Architectural Products,
Glass and Distribution groups have started the year well. However, the Precast
group continues to suffer from weakness in its telecommunications markets and
more competitive conditions in its structures division.
To date in 2002 we have completed acquisitions totalling €378 million, including
the purchase of the EHL concrete paving and landscape walling products business
in Germany which was announced last week. In March, the Group completed a
10-year US$1 billion Global Bond Issue which substantially extends the maturity
profile of the Group's debt. This, combined with benefits of the March 2001 €1.1
billion Rights Issue and our strong internal cash flow, places the Group in an
exceptionally strong position to avail of attractive acquisition opportunities
as they arise.
CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland
TELEPHONE +353.1.4041000 FAX +353.1.4041007
E-MAIL mail@crh.com WEBSITE www.crh.com
Registered Office, 42 Fitzwilliam Square, Dublin 2, Ireland
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