AGM Statement

CRH PLC
07 May 2003


                      N  E  W  S        R  E  L  E  A  S E

                       CHAIRMAN'S AGM UPDATING STATEMENT

                     ANNUAL GENERAL MEETING - 7th MAY 2003

Trading in the early months of 2003 has been affected by contrasting weather
patterns across our various operations. Although the impact has on balance been
adverse, we would hope that the effects will equalise as we move into the main
construction seasons in our various markets.


In Ireland, the trends in construction demand evident in the second half of 2002
have continued to date in 2003 boosted by the favourable Irish weather
conditions of recent months. Residential construction remains buoyant and,
combined with good levels of infrastructural activity, has resulted in strong
volume increases for the first four months of 2003, despite a weak backdrop for
commercial and industrial construction.


In Britain, overall construction activity levels to date are broadly in line
with the same period last year. Although Ibstock Brick volumes are slightly
behind last year, good price increases are being achieved. Residential demand in
Northern Ireland is good, however, the anticipated benefits from increased road
maintenance work have been slow to materialise.


In Mainland Europe, trading patterns have been mixed. An exceptionally cold
first quarter in Northern Europe adversely impacted our Materials Division
activities in the Polish and Finnish markets. However, our Swiss operations
experienced normal seasonal demand while volumes in Spain have remained strong
in an increasingly competitive market. In the Products and Distribution
Division, our concrete, clay and building products activities continue to be
affected by general weakness in residential and commercial markets in the
Benelux, France and Germany. Our Distribution operations have started the year
well, supported by good demand and margin improvement in our DIY retailing
operations in the Benelux.



In North America, traditionally low early season activity levels for the
Materials Division were reduced by severe snowfalls throughout the Northeast and
Midwest, offset somewhat by milder than usual conditions in the West. The main
construction season for the Materials Division is just now getting underway with
management strongly focussed on mitigating the impact of higher key
energy-related costs on our performance for the year as a whole. Our Products
and Distribution Division was also affected by poor weather which restricted
both residential and non-residential construction activity and product
shipments. While there are continuing uncertainties, underlying residential and
infrastructure demand look reasonable although the outlook for non-residential
activity remains weak.



To date in 2003 we have completed acquisitions totalling €285 million,
comprising 14 deals across our operations. With a robust cash flow and a strong
balance sheet, we will continue to grow the Group through internal development
and acquisitions but only where we see value and good strategic fit.



While recent weeks have seen the normal seasonal pick up in activity and some
moderation in energy costs, markets are likely to remain difficult for the
immediate future. We aim to offset the effect of this through our continuing
strong focus on cost control, efficiency improvements, the recovery of higher
input costs and an active development programme. However, recent currency
trends, in particular the weaker US$ which impacts the translation of our US
profits into euro, make this more challenging.

                                     ------

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

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


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