Trading Statement

CRH PLC
04 January 2006

     N     E     W     S            R     E     L     E     A     S     E


                                                                  4 January 2006


                    FULL YEAR 2005 TRADING UPDATE STATEMENT


CRH plc, the international building materials group, today issues this trading
statement for the year ended 31 December 2005. The Preliminary Results for 2005,
which will be the Group's first set of full-year results reported in accordance
with International Financial Reporting Standards (IFRS), are due to be announced
on Tuesday 7 March 2006.



Overview

CRH performed strongly in 2005 and full year profit before tax is expected to
exceed euro 1.25 billion, (2004 euro 1.10 billion, also on an IFRS basis).

First half activity benefited from strong organic growth in our American
operations and this, combined with incremental contributions from 2004 and 2005
acquisitions resulted in a euro 64 million increase in profit before tax to euro
383 million (2004: euro 319 million), despite the impact of generally subdued
markets and adverse weather in our European businesses.

In the second half, our American operations have coped well with higher energy
costs and some moderation in construction growth while European markets,
particularly for our Materials activities, have seen improved trading patterns.
Against this backdrop, profit before tax in the seasonally more significant
second half of the year is expected to show an advance of the order of euro 90
million over the 2004 outcome of euro 785 million.

The average 2005 US $/euro exchange rate of 1.2438 showed little change compared
with 2004 (1.2439).



Europe Materials

In Ireland , continuing strength in residential construction, recovery in
commercial and industrial and ongoing investment in infrastructure has resulted
in good overall volume increases. After a flat first half, our activities in
Finland and the Baltic states picked up steadily through the second half of the
year. Demand in our Polish operations also strengthened during the second half
and our cement volumes which had registered a 17% first half decline, ended the
year broadly in line with full year 2004 volumes. In Switzerland , our cement
volumes finished ahead of 2004 levels helped by stronger than anticipated demand
from the final phase of the major Loetschberg tunnel project. The Spanish market
remained strong throughout the year. Secil, the Portuguese cement, concrete
products and aggregates producer in which CRH acquired a 49% stake in June 2004,
had a positive first half but saw some softening in demand as the year
progressed.

With a strong first half incremental acquisition impact due to the inclusion of
CRH's share of Secil's results for January to May and with more positive
second-half trading, full year operating profit from this Division is expected
to show a satisfactory improvement on the 2004 level.



Europe Products

Our Products operations faced generally subdued markets and trading conditions
throughout 2005.

In Concrete Products, our architectural operations (pavers, tiles and blocks)
were impacted by poor early weather and generally weak demand in the Benelux,
Germany and the UK partly offset by benefits from 2004 and 2005 acquisitions.
However, structural operations (floor & wall elements, beams, vaults and
drainage products) performed well, helped by good demand in Belgium and Denmark
and an improved performance in France, resulting in higher profits for our
concrete operations overall. Stradal, the leading French landscaping and
infrastructural products business, acquired in August, performed in line with
expectations for the second half of 2005.

In Clay Products, UK demand weakened steadily as the year progressed and brick
industry volumes declined. Energy prices increased significantly, particularly
towards the end of the year. Nevertheless, Ibstock profits are expected to show
only a modest decline supported by strong pricing, improved factory and energy
efficiency and good cost control. In Mainland Europe, the impact of lower
volumes in Germany and Poland was offset by better pricing and productivity.

Our Insulation operations, which suffered from severe volatility in
energy-related input costs in the first half of the year, made good progress
with restructuring initiatives and delivered a more stable second half
performance. In Building Products, robust performances in Construction
Accessories and Fencing & Security more than offset difficult conditions in
Daylight & Ventilation's German businesses.

With a tough trading backdrop, full year operating profit from our Products
activities is expected to be lower than in 2004.



Europe Distribution

DIY: In a slow moving Benelux market with reduced consumer confidence, our DIY
business performed well, although profits were somewhat below a record 2004. Our
DIY joint venture in Portugal made good progress with an active programme of new
store openings.

Builders Merchants: After a weather-affected first half, underlying sales and
profits in our Dutch and French businesses picked up through the second half
while our Swiss businesses continued to build on the progress achieved in the
first six months. The acquisition of Quester in Austria was completed in
mid-October and its post-acquisition performance, while satisfactory, will have
only minimal impact on the 2005 outcome.

Overall, operating profit in Europe Distribution is expected to be similar to
2004 levels.



Americas Materials

The Americas Materials Division had significant success in recovering higher
energy costs with strong price improvements across its operations. Highway
markets were generally favourable; however, the strong product price increases
somewhat constrained the volume of asphalt paving work available in the final
quarter as most roadwork is tied to relatively fixed budgets at State, municipal
and local level.  Housing demand was strong throughout the year and
non-residential construction continued to improve.

Our New York/New Jersey operations enjoyed strong demand in the metropolitan New
York region while trading in Upstate New York was similar to 2004. In New
England, better trading in New Hampshire and Vermont was partially offset by
declines in Maine and Connecticut where price increases failed to recover
sharply higher energy costs. The Central region advanced with strong
performances in Ohio and West Virginia . Michigan saw some improvement although
our primary highway market remained depressed. As expected, Mountain Companies
which was acquired in late October had only modest impact on overall
profitability in the year. The West region experienced the strongest demand with
particularly buoyant markets in Utah and Idaho . While cement shortages hampered
our readymixed concrete operations in some western markets, especially in the
second half, the profit impact was limited.

As expected, the sharp rise in energy costs in the third quarter absorbed a
greater proportion of the  pricing benefits than in the first half of the year.
Nevertheless, the Division expects to report higher full year operating profit
and an improved margin compared with 2004.



Americas Products

After a very strong first half, the pace of advance for Americas Products
moderated somewhat over the second half of the year. However, overall demand
remained broadly positive with continuing strong housing demand and on-going
recovery in non-residential markets. These favourable conditions, combined with
modest recovery in telecommunications construction, effective cost control and
disciplined pricing resulted in significant profit and margin improvements in
our Precast operations. Our Architectural Products group (APG)  experienced
slower second-half demand in its repair, maintenance and improvement markets
while the strong first half profit advance at its Glen-Gery brick operation was
somewhat eroded by higher second-half energy costs. Despite this, APG made good
progress for the year as a whole. The Glass Group achieved another year of
strong organic sales and profit growth helped by a shift in mix towards
higher-value insulated and fabricated products.

The Division expects to deliver a good improvement in full year operating profit
and margin.



Americas Distribution

As in the latter months of 2004, our Distribution operations benefited
substantially in the first half of 2005 from significant repair work in Florida
in the aftermath of the devastating 2004 hurricanes.  This additional Florida
demand moderated through the second half of 2005 and the late 2004 gains arising
from steep price increases for many of the products handled by these businesses
were not repeated.  Despite the tougher second half comparatives our
Distribution operations delivered further organic growth and benefited from good
acquisition contributions.

Full year operating profit from this Division is expected to show a strong
advance with a further healthy improvement in overall operating margin.



Development

After a quiet first half which saw development initiatives of approximately euro
0.2 billion, activity picked up significantly in the second half of the year,
resulting in full year development activity of approximately euro 1.45 billion.
This includes the purchase by the Americas Materials Division of the Mountain
Companies and Southern Minnesota Construction announced in November,  the Europe
Materials Division's 26.3% equity investment in Corporacion Uniland announced
just before year-end,  the 24 small to medium-sized transactions announced in
our first half Development Strategy Update released in July,  together with a
further 31 transactions announced in the second half Development Strategy Update
released in conjunction with this trading statement. Today's development
announcement also includes 3 large capital projects to expand capacity and meet
growing customer demand.



Financial

While cash generation has remained strong, development activity and rising
interest rates are expected to result in a higher full year interest charge
compared with 2004. However, with improved profitability, EBITDA/net interest
cover for the year is expected to be similar to last year's level and the Group
remains exceptionally well positioned to avail of attractive acquisition
opportunities as they arise across its operations.



Outlook

CRH has again performed strongly in 2005 with significant full year organic
growth and a good incremental contribution from acquisitions leading to new
record profit levels. Our operations responded well to the challenge of higher
energy costs during 2005 and ongoing recovery of these through price
improvements and efficiency measures remains a priority for the year ahead.

The current outlook for our business is on the whole positive, with signs of
pick-up in the Dutch economy,  US highway markets underpinned by the passage of
a new Highway Bill, and a backdrop of substantial second half 2005 acquisition
activity.  With a continuing focus on operational effectiveness and the delivery
of value enhancing acquisitions, we look to 2006 with confidence.



This trading statement contains certain forward-looking statements as defined
under US legislation. By their nature, such statements involve uncertainty; as a
consequence, actual results and developments may differ from those expressed in
or implied by such statements depending on a variety of factors including the
specific factors identified in this trading update and other factors discussed
in our Annual Report on Form 20-F filed with the SEC.

CRH will host an analysts' conference call at 8.00am GMT on 4 January 2006 to
discuss this statement and the Development Strategy Update. The dial-in-number
is [phone]. A recording of the conference call will be available from
10.00am GMT on 4 January  2006 by dialling [phone]. The security code
for the replay will be 687613.



Contact CRH at Dublin 404 1000 ([phone])



Liam O'Mahony                 Chief Executive

Myles Lee                     Finance Director

Eimear O'Flynn                Head of Investor Relations

Maeve Carton                  Group Controller



       CRH plc, Belgard Castle , Clondalkin, Dublin 22, Ireland TELEPHONE
                       +353.1.4041000 FAX [phone]

E-MAIL [e-mail] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam Square
                              , Dublin 2, Ireland


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