Interim Results

CRH PLC
31 August 1999

CRH plc 1999 Interim Results
Six months ended 30th June, 1999
(Announced Tuesday, 31st August, 1999)
                                         Euro                       
                                                       
                                                       
     Sales*                             2,859 m        up   25%       
                                                       
                                                       
     Profit before tax                                 
                                                       
-    excluding exceptional items          158 m        up   46%       
                                      

-    including exceptional items          222 m        up  105%       
                                    


     Basic earnings per share (after goodwill amortisation)
  
-    excluding exceptional items         29.65 c       up   40%       
                                    

-    including exceptional items         39.70 c       up   87%       
                                
                                                       
     Cash flow per share                 58.40 c       up   41%       
                                                 
                                                         
     Dividend per share                   5.90 c       up   16%       
                                                       
                                                       
     Trading profit by destination*      Euro m   %                   
    (excluding exceptional items)
  
     Republic of Ireland                 49.8    26    up   23%       
     Britain and Northern Ireland        36.8    19    up  111%       
     Mainland Europe                     39.5    20    up   18%       
     The Americas                        68.1    35    up   80%   
                                        -----   ---
                                        194.2   100    up   50%       
                                        =====   ===                           
                                            
      Dividend cover               5.0 times (1998 : 4.1 times)
     (excluding exceptional items)
                           
      Interest cover*              5.4 times (1998 : 6.2 times) EBIT basis
     (excluding exceptional items) 8.5 times (1998 : 9.9 times) EBITDA basis
 
                         
*    Sales, trading profit and interest cover include share of joint ventures.

Don Godson, Chief Executive, said today:

'We had a strong first half. Good markets and recent acquisitions give us
confidence that this will be a year of significant progress for our Group.'


Contact at Dublin  404 1000  ([phone])
Don Godson, Chief Executive
Harry Sheridan, Finance Director
Myles Lee, General Manager - Finance



Interim statement

The Directors of CRH plc report profit before tax excluding exceptional items
of Euro 158.1 million for the six months ended 30th June, 1999, an increase of
46 per cent on 1998 (Euro 108.2 million).Profit before tax including
exceptional items was Euro 222.4 million. The exceptional items amount to a
net Euro 64.3 million and comprise a profit on disposal of Keyline Builders
Merchants partly offset by a write-down in the carrying value of fixed assets
at Premier Periclase.

Basic earnings per share excluding exceptional items amounted to 29.65 cents,
an increase of 40 per cent. Basic earnings per share including exceptional
items amounted to 39.70 cents.

The Group profit and loss account separately discloses the impact of 1999
bolt-on acquisitions as well as results from discontinued operations. The
latter category includes results for Keyline, disposal of which was completed 
in early June, and for Caima Ceramica, which was acquired as part of the
Ibstock transaction in 1998 and was sold in March of this year.

Exchange effects had a positive impact of Euro 0.3 million on profit before
tax compared with the first half of 1998.

Dividends

The Board has decided to pay an interim dividend of 5.90 cents per share on
the Ordinary and Income capital of the Company. This compares with an interim
dividend of 5.08 cents in 1998, an increase of 16 per cent. Dividends will be
paid on 5th November, 1999 to shareholders registered at the close of business
on 10th September, 1999. Dividends in respect of both Income Shares and
Ordinary Shares carry a nil tax credit compared with tax credits of 11/89ths
and 5/90ths respectively in 1998. Shareholders are being offered the choice of
new shares in lieu of cash dividends.

Regional review

REPUBLIC OF IRELAND

The continuing strong growth in building activity resulted in good volume
increases for cement, concrete products and basic materials although pricing 
remains competitive. Irish Cement's profits advanced reflecting higher volumes
and the absence of the 1998 production disruptions associated with the
installation of the new grate cooler at the Platin plant. The Roadstone-Wood
Group also reported higher profits.

Demand and pricing in Premier Periclase's international refractory markets
remain weak and production was halted from  May to early August to avoid
excess stocks in a period of low demand. As a result, Premier Periclase
reported a loss in the first half.

BRITAIN AND NORTHERN IRELAND

Ibstock turned in a good performance in its first six months with the Group. 
Although brick volumes were slightly behind first half 1998 levels, better 
prices and cost efficiencies contributed to the satisfactory out-turn.
Ibstock's corporate head office was closed at the end of May. The Forticrete
concrete masonry and rooftile business reported better results and has now
been integrated with Ibstock's stone walling and masonry business. Combat
Polystyrene continued to perform well in a highly competitive market.

In Northern Ireland, Farrans Limited also reported improved results but
pricing remains difficult.

These results include trading at Keyline Builders Merchants for the months
January to May as well as an exceptional profit before tax of Euro 79.6
million arising from its disposal in early June.


MAINLAND EUROPE

Trading  patterns were mixed in Mainland Europe. Our Dutch distribution and
fencing activities reported better profits, but concrete and clay operations
were impacted by overcapacity and by increased competition. Our French
distribution activities improved, while in Belgium, Marlux's profits advanced
strongly. Results from our German clay products operation, now 100%-owned,
were lower than in 1998. Demand levels in Spain continued to grow resulting in
a significant rise in profits.

Higher volumes combined with improved cement pricing resulted in a substantial
profit advance at our Polish operations, the results of which are now fully
consolidated. In the first half of 1998, these results were reported on a
joint venture basis.

THE AMERICAS

Profits from our Oldcastle operations in North America advanced strongly
helped by favourable weather and the first time inclusion of Ibstock's 
Glen-Gery brick division. The Precast Group benefited from further strong 
profit growth in its Californian operations and continuing good demand
nationwide. The Architectural Products Group also enjoyed favourable demand
across its operations with particular progress at Groupe Permacon in Quebec.
Strong brick demand and modest price increases resulted in an excellent
initial contribution from Glen-Gery. The Materials Group enjoyed a good start
in the traditionally loss-making first half as increased TEA-21 funding began
to impact. The Glass Group reported higher first half profits despite greater
competition and increased raw glass costs. The Distribution Group met
expectations in the seasonally quieter and less profitable first half.

In Argentina, the economy has been adversely impacted by events in Brazil.
Despite a decline in underlying sales, Canteras Cerro Negro reported improved
profits partly reflecting the absence of 1998 rationalisation costs.

Finance and taxation

The higher first half interest charge reflects the financing costs of 1998 and
first half 1999 acquisition activity, in particular the purchase of Ibstock
plc. As in prior years, the interim taxation charge is an estimate based on
the current expected full year tax rate.

Acquisitions and disposals

First half total acquisition expenditure was a record Euro 424 million
principally reflecting expenditure of Euro 132 million on 16 small to
medium-sized deals in Holland, Poland, Ukraine, the United States and Chile
together with the buyout of the minority interest in Ibstock. Disposal
proceeds of Euro 300 million largely reflect the sale of Keyline and of Caima
Ceramica.

Since end-June, the completion of the Finnsementti/Lohja Rudus, and the US 
Materials acquisitions Dell, Millington and Thompson-McCully have brought
total year-to-date acquisition spending to more than Euro 1.3 billion.

Year 2000

The Group's preparations for the adaptation of its information and control
systems to cope with the Year 2000 are substantially complete and we do not
anticipate any serious problems internally, nor do we have any reason to
believe that major customers or suppliers are not adequately prepared.

Outlook

In the Republic of Ireland, strong job creation, good demographics and 
growing infrastructural requirements underpin buoyant construction activity.

In Britain, interest rate reductions have contributed to a modest improvement
in sector sentiment and outlook.

In Mainland Europe, the economic outlook in the Benelux is generally positive
but overcapacity in some sectors, particularly for clay and concrete products,
is impacting prices. The outlook in France and Spain is good although Germany
remains difficult. Our Polish operations continue to benefit from recent
cement price increases in a growing market.

In North America, the continuing strength of the economy and the gradual
pick-up in TEA-21 funded activity augur well for the second half of the year.
It should be noted that the second half of 1998 benefited from exceptionally
good weather in late autumn and early winter.

Following a period of intense development activity, the immediate management
focus is to ensure the successful integration of the recent major
acquisitions. Our continuing strong cash flow and interest cover will enable
us to continue our traditional programme of mid-sized bolt-on deals.

The first half of 1999 has seen further substantial increases on 1998.
Combined with benefits from plant upgrades and acquisitions of 1998 and 1999,
this gives us the confidence that 1999 will be another year of significant
progress for CRH.


Group profit and loss account
for the six months ended 30th June, 1999 (unaudited)

                                
                  Continuing operations Discontinued
                           Acquisitions operations  Total Restated      
                                    
                            1999   1999     1999     1999   1998     Change   
                                                             
                          Euro m   Euro m   Euro m   Euro m  Euro m     %
                                      
                                                                   
Sales, including share of 
joint ventures            2,608.1  46.3     204.4   2,858.8  2,293.6  +24.6
Less: share of joint                
ventures                     61.2   2.6       -        63.8     86.7
                          ------------------------------------------
Group sales               2,546.9  43.7     204.4   2,795.0  2,206.9  +26.6
                          ==========================================
                                                                              
Group operating profit,           
before amortisation         179.8   3.3       9.4     192.5    125.1  
Goodwill amortisation        (3.6) (0.5)      -        (4.1)    (0.2)       
                                  
Share of joint ventures'              
trading profit                5.4   0.4       -         5.8      4.3
                            ----------------------------------------
Trading profit, excluding   
exceptional items           181.6   3.2       9.4     194.2    129.2  +50.3   
                                           
Exceptional items           (15.3)  -        79.6      64.3      -      
                            ----------------------------------------     
Profit on ordinary                 
activities before interest  166.3   3.2      89.0     258.5    129.2
                            =====================

Group interest payable and similar charges (net)      (35.6)   (17.7)      
Share of joint ventures' net interest                  (0.5)    (3.3)       
                                                       -------------
Profit on ordinary activities before taxation         222.4    108.2 +105.5
                                               
Taxation on profit excluding                                 
exceptional items (estimated)                         (42.0)   (26.5)  
Taxation on exceptional items (estimated)             (25.2)     -           
                                                      --------------
Profit on ordinary activities after taxation          155.2     81.7        
Profit applicable to equity minority interests         (0.7)     -           
Preference dividends                                    -        -  
                                                      --------------
Profit for the period attributable to                   
ordinary shareholders                                 154.5     81.7  +89.1   
Ordinary dividends                                     23.1     19.8   
                                                      --------------
Retained profit for the financial period              131.4     61.9        
                                                      ==============          
Including exceptional items     
                                   
Basic earnings per Ordinary Share for the period      39.70c   21.20c +87.3
Diluted earnings per Ordinary Share for the period    39.53c   21.15c      
                                                                   
Excluding exceptional items   
                                     
Basic earnings per Ordinary Share for the period      29.65c   21.20c +39.9

Cash flow per share for the period                    58.40c   41.46c +40.9

Dividend per share                                     5.90c    5.08c +16.1
                                                                  

Summarised Group balance sheet (unaudited)
                                                                Restated
                                               30th June,     30th June,
                                                     1999           1998
                                                   Euro m         Euro m
                                              
                                                        
Intangible assets (goodwill)                        176.1           17.7
Fixed assets                                      2,556.8        1,797.7
Current assets                                    2,933.6        2,649.9
                                                  -------        -------
                                                  5,666.5        4,465.3
                                        
Creditors (amounts falling due within one year)   1,593.9        1,209.7
          
                                                  -------        -------
Total assets less current liabilities             4,072.6        3,255.6
                                                  =======        =======
                                                         
Creditors (amounts falling                               
due after more than one year)
Loans                                             1,909.3        1,632.8
Deferred acquisition consideration                   91.2           78.5
Corporation tax                                      31.1           21.3
Deferred tax                                         92.6           86.6
                                                         
Capital and reserves                              1,905.5        1,412.1
Minority shareholders' equity interest               25.7           14.3
Capital grants                                       17.2           10.0
                                                  -------        -------
                                                  4,072.6        3,255.6
                                                  =======        =======
                                                         
Net debt                                          1,041.5  *       563.6
                                                  =======        =======

* Net debt comprises loans (Euro 1,909.3 million) plus advances (Euro 347.6
million) less cash, short-term deposits and liquid resources (Euro 1,215.4 
million).

Supplementary information

1  Change in accounting policy

Presentation of the financial statements in Euros

In  accordance with the policy adopted for the Group's full year 1998
financial statements, the 1999 interim results and summarised balance sheet
are presented in Euros. Results and cash flows of subsidiary and joint venture
undertakings outside the Euro Zone have been translated into Euros at the
average exchange rates for the period, and the related balance sheets have
been translated at the rates of exchange ruling at the balance sheet date. The
1998 comparative figures have been translated from Irish Pounds into Euros
using the fixed conversion rate of Euro 1 = IR£0.787564.

The average and period-end exchange rates used in respect of the principal
operating currencies for 1999 and 1998 are set out below.

Exchange rates used were as follows:

                               Average for six        
                               months to June    As at 30th June
                               ---------------   ---------------              
Euro 1 =
                                  1999    1998*     1999    1998*
U.S. Dollar                     1.0888   1.0951   1.0328   1.0996
Pound Sterling                  0.6721   0.6638   0.6563   0.6593
Dutch Guilder                  2.20371   2.2283  2.20371   2.2363
Belgian Franc                  40.3399    40.80  40.3399    40.91
Deutschmark                    1.95583   1.9774  1.95583   1.9836
Spanish Peseta                 166.386   167.77  166.386   168.36
French Franc                   6.55957   6.6281  6.55957   6.6489
Polish Zloty                    4.2036   3.8821   4.0580   3.8274
                                    
*    Exchange rates as at 30th June, 1998, and average rates for the six
months to 30th June, 1998, are based on the exchange rates for the relevant
currencies in Irish Pounds, converted into  Euros at the fixed Euro / Irish
Pound conversion rate of Euro 1 = IR£0.787564.

2  Discontinued operations

On 4th June, 1999, the Group sold Keyline Builders Merchants Limited
('Keyline'), a subsidiary based in the UK, to Travis Perkins PLC. The results
of Keyline up to the  date of sale are reported under 'discontinued
operations' in the Group profit and loss account for the six months ended 30th
June, 1999. The profit on sale of Keyline, net of goodwill of Euro 57.6
million previously written-off against CRH reserves, amounted to Euro 79.6
million, and taxation on the profit is estimated at Euro 26.8 million.

In  addition, on 22nd March, 1999, the Group disposed of its entire holding in
Caima Ceramica e Servicos SGPS S.A. ('Caima'), a former subsidiary of Ibstock
PLC based in Portugal. The results of Caima up to the date of sale are
reported under 'discontinued operations' in the Group profit and loss account
for the six months ended 30th June, 1999. No profit or loss arises on this
transaction.

3  Geographical analysis

Analysis by destination                    1999           Restated 1998
                                         Euro m       %   Euro m       %
Sales*                                                   
Republic of Ireland                       275.8     9.6    248.7    10.9
Britain and Northern Ireland              510.8    17.9    383.5    16.7
Mainland Europe                           665.4    23.3    546.3    23.8
The Americas                            1,406.8    49.2  1,115.1    48.6
                                        --------------------------------
                                        2,858.8     100  2,293.6     100
                                                  ======           =====
Less: share of joint ventures             (63.8)           (86.7)
                                        -------          -------
Group sales                             2,795.0          2,206.9       
                                        =======          =======

Trading profit*, excluding exceptional items                               

Republic of Ireland                        49.8    25.6     40.4    31.3
Britain and Northern Ireland               36.8    19.0     17.4    13.5
Mainland Europe                            39.5    20.3     33.5    25.9
The Americas                               68.1    35.1     37.9    29.3
                                          ------------------------------
                                          194.2     100    129.2     100
                                                    ===              ===
Less: share of joint ventures              (5.8)            (4.3)        
                                          -----            -----
Group trading profit                      188.4            124.9   
                                          =====            =====     
* including share of joint ventures


4  Exceptional items
                                                           1999
                                                    -------------------
                                                    Euro m       Euro m
                                               Exceptional
                                                     items     Taxation
                                      
Continuing operations                          
Write-down in carrying value of Premier Periclase    (15.3)        (1.6)

Discontinued operations                        
Profit on disposal of discontinued operations         79.6         26.8
                                                      -----------------
Total exceptional items                               64.3         25.2
                                                      =================

Financial  Reporting Standard 11 - Impairment of Fixed Assets and Goodwill
(FRS 11) requires an assessment of the carrying value of fixed assets, in
situations where impairment may have arisen, by reference to future cash flows
and estimated net realisable value. An impairment review of the fixed assets
of Premier Periclase indicated that the current carrying value is not
supported and a write-down has accordingly been reflected in these results.

5  Movements in capital and reserves

                                                   1999   Restated 1998
                                                 Euro m          Euro m
At 1st January                                  1,554.0         1,309.6
Retained profit for the period                    131.4            61.9
Currency translation effects                      135.5            24.3
Issue of ordinary share capital (net of expenses)  27.0            16.3
Goodwill written-back on disposal of Keyline       57.6             -
                                                -----------------------
At 30th June                                    1,905.5         1,412.1
                                                =======================

6  Cash flow

The table below summarises the Group's cash flows for the six months ended
30th June, 1999 and 30th  June, 1998.

                                                   1999  Restated 1998
                                                 Euro m         Euro m
Inflows                                                  
Profit before tax (excluding exceptional items)   158.1          108.2
Depreciation and goodwill amortisation            111.9           78.0
Disposals                                         299.9           17.8
Share issues (net of expenses)                     27.0           16.3
                                                  --------------------
                                                  596.9          220.3
                                                  --------------------
Outflows                                       
Working capital movement                          129.3           12.1
Capital expenditure                               181.6          102.6
Acquisitions and investments                      423.9          119.6
Dividends                                          47.4           40.6
Tax paid                                           33.2           25.3
Other                                               7.0            7.0
                                                  --------------------
                                                  822.4          307.2
                                                  --------------------
Net outflow                                      (225.5)         (86.9)
Translation adjustment                            (86.5)         (11.5)
                                                  --------------------
Increase in net debt                             (312.0)         (98.4)
                                                  =====================

7  Other

                                                   1999   Restated 1998
                                                      
Dividend cover (times)                              5.0             4.1
EBIT interest cover (times) *                       5.4             6.2
EBITDA interest cover (times) *                     8.5             9.9
Average shares in issue (millions)                389.2           385.3
Net dividend per share (cents)                     5.90c           5.08c
Tax credit on net dividend payable on:                        
   - Ordinary Shares                                 - **      0.282164c
   - Income Shares                                   - **      0.627736c
Depreciation charge - Euro m                      107.8            77.8
Net debt -  Euro m                              1,041.5           563.6
Debt ratio                                          53%             39%

*  including share of joint ventures and excluding exceptional items
** dividend payments made on or after 6th April, 1999 do not carry a tax
credit


8  Distribution of Interim Report

These Interim results are available on the Group's Website. A printed copy is
being posted to shareholders on  Wednesday, 1st September, 1999 and is
available to the public from that date at the Company's registered office.  
Details of the Scrip Dividend Offer in respect of the Interim 1999 dividend 
will be posted to shareholders on Tuesday, 21st September, 1999.