CRH shaken by global downturn

DUBLIN-BASED building materials giant CRH expects profits to drop this year as the global economic downturn and slowing demand take their toll.

The group, one of the world's biggest suppliers to builders, posted a 10 per cent drop in first-half pre-tax profit yesterday after warning last month of an end to years of uninterrupted earnings growth.

Chief executive Liam O'Mahony said: "Following 15 years of consecutive growth and a record performance in 2007, more difficult trading conditions and a weaker dollar will, as previously indicated, result in a lower outcome for 2008."

Pre-tax profit for the first half to the end of June fell to 606 million (483m). CRH had said in July it expected a profit of around 600 million.

CRH said the key US market, particularly on the housing side, continued to be challenging.