Interim Results

CRH PLC
4 September 2001

2001 INTERIM RESULTS

Six months ended 30th June, 2001

Announced Tuesday, 4th September, 2001


Sales - euro                                  4,496 m up 23%

                                Before goodwill            After goodwill
                                  amortisation              amortisation

Trading profit - euro             308 m        up 11%       281 m         up 8%
                                  
Profit before tax - euro          213 m         up 8%       186 m         up 3%
                                  
Earnings per share - cent       32.91 c      down 3%*     27.36 c      down 8%*
                                
Cash earnings per share -                     75.75 c      up 8%*
cent                                          
Dividend per share - cent                      6.75 c      up 11%*
                                               
* Percentage changes in per share amounts are based on 2000 figures adjusted
for the March 2001 Rights Issue.

Trading profit in the Republic of Ireland increased to euro 80 million with
continued good economic and construction activity boosted by an increase of
euro 12.6 million in profit on disposal of fixed assets. Trading profit
excluding profit on disposal increased by 15%.


In Britain and Northern Ireland, trading profits fell slightly by 2% to euro 32
million against a background of a weak UK housing market.


In Mainland Europe, our operations were affected by mixed trading patterns and
profits were reduced by rationalisation costs of euro 5.9 million and by a euro
5.1 million loss on disposal of Vebofoam (primarily goodwill previously
written-off against reserves). Total trading profit fell by 17% to euro 59
million. Excluding the impact of rationalisation and the Vebofoam loss trading
profits declined by 2%.


Trading profit in the Americas increased by 12% to euro 110 million. The impact
of the first-time inclusion of the traditionally loss-making winter period for
2000 Materials acquisitions and varied demand patterns in certain Products &
Distribution markets were more than offset by the benefits of lower bitumen
costs, contributions from current year acquisitions and favourable translation
effects.


Development activity continued with euro 515 million spent on over 20
acquisitions.




Liam O'Mahony, Chief Executive, said today:

'Overall, current conditions in our various markets are less favourable than
in recent years. Nevertheless, supported by our balanced spread of operations
and contributions from 2000 and 2001 acquisitions, we look forward to a year
of further progress in 2001.'








CONTACT: [phone]


Liam O'Mahony, Chief Executive

Harry Sheridan, Finance Director

Myles Lee, General Manager - Finance








Interim statement



Highlights

The results highlights for the first six months of 2001 are set out below.

Sales: euro 4,496 million, up 23.3%

Trading profit before goodwill amortisation: euro 308 million, up 10.6%

Basic earnings per share before goodwill amortisation: 32.91c, down 3.0%

Cash earnings per share: 75.75c, up 8.4%



Following the March 2001 Rights Issue, the average number of shares in issue
increased by 13.4% to 488.6 million (2000: 430.8 million). Percentage changes
in per share amounts are based on 2000 figures adjusted for the Rights Issue.


Translation effects in the first six months of 2001 arising from the
strengthening of the US Dollar versus the euro had a positive impact of euro 4
million on profit before tax compared with the first half of 2000. In
addition, shareholders' funds were enhanced by euro 239 million due to
translation effects.


Goodwill amortisation amounted to euro 27.1 million (2000: euro 17.7 million).
Spending on acquisitions and investments in the first half of 2001 amounted to
euro 515 million (2000: euro 931 million).

Dividends

The Board has decided to pay an interim dividend of 6.75c per share, an
increase of 10.7% on the 2000 interim dividend (adjusted for the effect of the
March 2001 Rights Issue) of 6.10c. Dividends will be paid on 9th November,
2001 to shareholders registered at the close of business on 14th September,
2001. A scrip dividend alternative is being offered to shareholders.

Regional review

REPUBLIC OF IRELAND

Sales                                    euro 338.2 million            up 10.7%
Trading profit*                           euro 80.1 million            up 36.0%

* Trading profit after including:                      2001                2000
- Goodwill amortisation charge                          nil                 nil
- Profit on disposal of fixed assets      euro 14.5 million    euro 1.9 million


Following good growth in the first quarter, general activity levels in the
second quarter were more subdued reflecting both the impact of measures to
prevent the spread of foot and mouth disease and a decline in residential
construction activity. However, the infrastructure sector remained buoyant and
trading profit (excluding profit on disposals) advanced by 15%. The profit on
disposal of fixed assets arises primarily on the sale of surplus lands.

BRITAIN AND NORTHERN IRELAND

Sales                                    euro 335.4 million           down 5.3%
Trading profit*                           euro 32.0 million           down 2.4%

* Trading profit after including:                      2001                2000
- Goodwill amortisation charge             euro 2.7 million    euro 2.5 million
- Profit on disposal of fixed assets                    nil    euro 0.2 million


The weakness in the UK housing sector, Ibstock Brick's key market, which was
exacerbated by exceptionally wet weather in the early months of the year,
resulted in lower brick deliveries. However, price increases and efficiency
gains helped Ibstock offset the volume declines. Forticrete's concrete masonry
business was adversely impacted by weather conditions, but our insulation
activities benefited from lower input costs and from the integration of the
Springvale operations acquired in May 2000 with Combat, our legacy expanded
polystyrene insulation company in Britain.


In Northern Ireland, good Private Finance Initiative (PFI) demand was offset
by weaker demand in residential markets.


MAINLAND EUROPE

Sales                                     euro 1,242.4 million        up 34.1%
                                                       
Trading profit*                              euro 59.2 million       down 17.0%

* Trading profit after including:                         2001             2000
- Goodwill amortisation charge               euro 11.7 million euro 8.7 million
- (Loss)/profit on disposal of fixed        euro (4.5) million euro 0.8 million
assets


These results reflect the first-time inclusion of the January-June results for
the Jura Group's materials and distribution activities in Switzerland
(acquired at end-November 2000).


Trading patterns in Mainland Europe in the first half of the year were mixed.


The Europe Materials Division's operations in Spain enjoyed further volume
increases in a good market. In Poland, construction activity in the first half
was significantly lower than 2000 and profits declined. The Finnish market
also saw lower demand, particularly for aggregates and readymixed concrete in
the Helsinki region, resulting in lower profits. In Switzerland, Jura's
materials operations met expectations in a growing market.


Our Distribution businesses in the Netherlands, France and Portugal all
reported improved results. In the Concrete Products Group, modest improvements
in our existing Dutch and Belgian operations and strong initial contributions
from recent acquisitions were more than offset by tough trading conditions
together with rationalisation costs of euro 2.4 million in our French
operations. Results from the Clay Products Group declined sharply with further
difficult trading conditions in Holland and Germany and rationalisation costs
of euro 3.5 million associated with the closure of production capacity at AKA
in Germany. In the Building Products Group, results for the Heras Fencing &
Security operations were slightly below 2000 levels, while the Insulation and
Rooflights & Ventilation divisions reported similar profits in difficult
markets.


The loss on sale of fixed assets includes euro 5.1 million (primarily goodwill
previously written-off against reserves) arising on the transfer of our
Vebofoam insulation business to the Gefinex Jackon joint venture in which CRH
acquired a 49% stake.


THE AMERICAS

Sales                                   euro 2,580.2 million           up 25.3%
Trading profit*                           euro 109.6 million           up 12.1%

* Trading profit after including:                       2001               2000
- Goodwill amortisation charge             euro 12.7 million   euro 6.5 million
- Profit on disposal of fixed assets        euro 2.7 million   euro 2.6 million


In the Materials Division, market demand generally in the first half reflected
the ongoing gradual pick-up in TEA-21 funded activity. Better pricing and
lower bitumen costs resulted in underlying gains compared with first half
2000, but these benefits were largely offset by the first-time inclusion of
winter losses from acquisitions completed during 2000, in particular The
Shelly Group (acquired February 2000) and Dolomite (acquired June 2000).
Markets in the Northeast generally saw strong activity levels with a good
initial contribution from New Jersey-based Mount Hope Rock Products which was
acquired at end-April. In the Midwest, while Thompson-McCully operations in
Michigan benefited from better demand, Shelly's West Virginia operations were
adversely impacted by slower state spending. The Mountain states remain
depressed, but operations in the Northwest performed well. Overall, the
traditional first half loss in the Materials Division was lower than in 2000.


Profits from our Products & Distribution Division in North America advanced
with acquisition benefits compensating for underlying declines. The Precast
Group was adversely impacted by difficulties in the telecommunications sector
and the electrical utility market in California. Although order backlogs in
the Architectural Products Group continued strong, mixed weather conditions
and economic uncertainty resulted in a varied pattern of order drawdown. Plant
start-ups and increases in the cost of natural gas impacted profitability. The
Glass Group continued to perform well despite softness in some regional
markets and benefited from a good contribution from the Hoffer's acquisition
completed in September 2000. The Distribution Group reported similar profits
in its seasonally less profitable first half. Despite very difficult economic
circumstances, our operations in South America reported improved results.

Acquisitions and disposals


First half total acquisition and investment expenditure of euro 515 million
includes expenditure of euro 154 million on Mount Hope Rock Products in North
America while the remaining euro 361 million includes the cost of over 20
small to medium-sized deals in Europe and North America. Proceeds from
disposal of fixed assets and from the sale of Vebofoam to Gefinex Jackon
amounted to euro 52 million.


Finance and taxation


The higher first half interest charge reflects the financing costs of
significant 2000 and first half 2001 development activity, partly offset by
interest income on the proceeds of euro 345 million from the 5% share placing
in September 2000 and from the 1 for 4 Rights Issue completed in March which
raised approximately euro 1.1 billion (net of expenses). These equity issues
ensure that the Group is not constrained in its plans to take full advantage
of attractive acquisition opportunities as they arise in our various
geographic, product and sectoral markets.


As in prior years, the interim taxation charge is an estimate based on the
current expected full year tax rate.


Outlook


In the Republic of Ireland, although the pace of growth in both economic and
construction activity has slowed significantly, underlying demand is supported
by a strong infrastructural investment programme. In Britain, the outlook
remains flat with a continuing focus on achieving efficiency and price
improvements. In Mainland Europe, while Spain and Switzerland remain generally
positive, we face slowing demand in our markets in the Benelux, France and
Finland as well as very difficult conditions in Germany and Poland.


In North America, our Materials operations should continue to benefit from the
positive impact of TEA-21, and the current outlook for bitumen and energy
costs is more favourable than in 2000. For our Products & Distribution
operations, despite economic uncertainties, the demand outlook remains
reasonably steady. Stable energy costs and normal weather patterns remain key
to the full year outcome.


Overall, current conditions in our various markets are less favourable than in
recent years. Nevertheless, supported by our balanced spread of operations and
contributions from 2000 and 2001 acquisitions, we look forward to a year of
further progress in 2001.







Group profit and loss account
for the six months ended 30th June, 2001 (unaudited)

                                         Continuing
                                         operations
                                       Acquisitions     Total
                                        2001   2001      2001     2000      %
                                      euro m euro m    euro m   euro m Change   
 
                                                                         
Sales, including share of joint      4,396.2  100.0   4,496.2  3,645.7  +23.3
ventures
Less: share of joint ventures         (75.8)  (2.3)    (78.1)   (89.0)
Group sales                          4,320.4   97.7   4,418.1  3,556.7  +24.2
Cost of sales                      (3,063.6) (70.2) (3,133.8)(2,482.8)
Gross profit                         1,256.8   27.5   1,284.3  1,073.9
Operating costs                      (983.6) (13.4)   (997.0)  (808.3)
Goodwill amortisation                 (26.0)  (1.1)    (27.1)   (17.7)
Group operating profit                 247.2   13.0     260.2    247.9
Share of joint ventures' operating       8.0      -       8.0      7.4
profit
Operating profit, including share of   255.2   13.0     268.2    255.3
joint ventures
Profit on disposal of fixed assets     12.7      -       12.7      5.5
Trading profit, including share of    267.9   13.0      280.9    260.8   +7.7
joint ventures
Group interest payable (net)                           (94.3)   (80.1)
Share of joint ventures' net interest                   (0.7)    (0.5)
Profit on ordinary activities before taxation           185.9    180.2   +3.2
Taxation on profit on ordinary activities              (52.0)   (50.5)
Profit on ordinary activities after taxation            133.9    129.7
Profit applicable to equity minority interests          (0.2)    (1.2)
Preference dividends                                        -        -
Profit for the period attributable to ordinary          133.7    128.5   +4.0
shareholders
Ordinary dividends                                     (35.1)   (26.5)
Profit retained for the financial period                 98.6    102.0
Earnings per share for the period
Basic
- Including goodwill amortisation                      27.36c  29.83c*   -8.3
                                                                  
- Excluding goodwill amortisation                      32.91c  33.94c*   -3.0
                                                                  
Diluted                                                27.09c  29.49c*   -8.1
                                                                  
Cash flow per share for the period                     75.75c  69.89c*   +8.4
                                                                  
Dividend per share                                      6.75c   6.10c*  +10.7

* Prior year per share amounts have been restated for the bonus element of the
March 2001 1 for 4 Rights Issue.







Movements on profit and loss account

for the six months ended 30th June, 2001 (unaudited)
                                                                2001       2000
                                                              euro m     euro m

At 1st January                                               1,992.2    1,496.4
Profit retained for the period                                  98.6      102.0
Currency translation effects                                   239.1       57.0
Goodwill written back on disposal of Vebofoam*                   5.8          -
At 30th June                                                 2,335.7    1,655.4

*      In May 2001, as part of the acquisition of the Gefinex insulation
business in Germany, the Group transferred its wholly-owned Vebofoam expanded
polystyrene business to Gefinex Jackon, a joint venture in which CRH acquired
a 49% stake. The loss recognised on this transfer amounted to euro 5.1
million, including euro 5.8 million of goodwill previously written-off against
reserves.

Statement of total recognised gains and losses

for the six months ended 30th June, 2001 (unaudited)
                                                                  2001    2000
                                                                euro m  euro m

Profit for the period attributable to ordinary shareholders      133.7   128.5
Currency translation effects                                     239.1    57.0
Total recognised gains and losses for the period                 372.8   185.5







Group balance sheet as at 30th June, 2001 (unaudited)
                                                     2001   2001   2000    2000
                                                   euro m euro m euro m  euro m
Fixed assets
Intangible asset - goodwill                              1,062.4          807.8
Tangible assets                                          5,182.3        4,061.2
Financial assets
Investment in joint ventures - share of gross       167.3         115.4
assets
- share of gross liabilities                       (84.4)        (60.9)
- loans to joint ventures                            25.4          12.9
Other investments                                    42.3          21.0
                                                           150.6           88.4
                                                         6,395.3        4,957.4
Current assets
Stocks                                             1,093.2         866.4
Debtors                                            2,099.8       1,514.9
Cash, short-term deposits and liquid resources     1,307.7         885.0
                                                   4,500.7       3,266.3
Creditors (amounts falling due within one year)
Bank loans and overdrafts                           645.8        1,245.2
Trade and other creditors                         1,641.6        1,274.5
Corporation tax                                      63.8           41.7
Dividends proposed                                   34.2           26.4
                                                  2,385.4        2,587.8
Net current assets                                       2,115.3          678.5
Total assets less current liabilities                    8,510.6        5,635.9
Creditors (amounts falling due after more than one
year)
Loans                                             3,130.4       2,544.8
Deferred acquisition consideration                  212.3         236.6
Corporation tax                                      41.3          32.2
                                                         3,384.0       2,813.6
Capital grants                                              16.5          18.1
Provisions for liabilities and charges                     574.3         391.9
Capital and reserves
Called-up share capital
Equity share capital                                176.8         133.9
Non-equity share capital                              1.2           1.2
Equity reserves
Share premium account                             1,985.9         582.8
Other reserves                                        9.9           9.9
Profit and loss account                           2,335.7       1,655.4
Shareholders' funds                                      4,509.5       2,383.2
Minority shareholders' equity interest                      26.3          29.1
                                                         8,510.6       5,635.9







Group cash flow statement

for the six months ended 30th June, 2001 (unaudited)
                                                             2001          2000
                                                           euro m        euro m

Net cash inflow from operating activities                   146.6         109.5
Dividends received from joint ventures                        1.6           1.2
Returns on investments and servicing of finance
Interest received                                            33.2          25.4
Interest paid                                             (140.6)        (98.2)
Finance lease interest paid                                 (0.1)         (0.2)
                                                          (107.5)        (73.0)
Taxation
Irish corporation tax paid                                 (14.4)        (11.3)
Overseas tax                                                  1.4        (37.8)
                                                           (13.0)        (49.1)
Capital expenditure
Purchase of tangible assets                               (246.8)       (222.0)
Less: Capital grants received                                 0.1             -
New finance leases                                            0.4             -
Disposal of fixed assets                                     43.6          13.8
                                                          (202.7)       (208.2)
Acquisition and disposal of subsidiary undertakings and
joint ventures
Acquisition of subsidiary undertakings                    (407.6)       (875.9)
Disposal of subsidiary undertaking                            8.1             -
Deferred acquisition consideration                         (32.3)        (19.0)
Advances repaid and investment in joint ventures           (16.5)         (5.4)
                                                          (448.3)       (900.3)
Equity dividends paid                                      (53.7)        (41.2)
Cash outflow before use of liquid resources and financing (677.0)     (1,161.1)
Cash inflow from management of liquid resources              72.7         116.7
Financing
Issue of shares                                           1,096.4           7.9
Expenses paid in respect of share issues                   (19.8)         (0.1)
(Decrease)/increase in term debt                          (556.3)         921.1
Capital element of finance leases repaid                    (2.1)         (0.2)
                                                            518.2         928.7
Decrease in cash and demand debt in the period             (86.1)       (115.7)

Reconciliation of net cash flow to movement in net debt
Decrease in cash and demand debt in the period             (86.1)       (115.7)
Cash outflow/(inflow) from movement in term debt            558.4       (920.9)
Cash inflow from management of liquid resources            (72.7)       (116.7)
Change in net debt resulting from cash flows                399.6     (1,153.3)
Loans and finance leases, net of liquid resources,         (58.7)        (30.7)
acquired with subsidiaries
New finance leases                                          (0.4)             -
                                                            340.5     (1,184.0)
Translation adjustment                                    (189.2)        (51.7)
Movement in net debt for the period                         151.3     (1,235.7)
Net debt at 1st January                                 (2,619.8)     (1,669.3)
Net debt at 30th June                                   (2,468.5)     (2,905.0)







Supplementary information

1. Translation of foreign currencies

These financial statements are presented in euro. Results and cash flows of
subsidiary and joint venture undertakings based in non-euro countries have
been translated into euro at 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. Adjustments arising on translation of the results of
non-euro subsidiary and joint venture undertakings at average rates, and on
restatement of the opening net assets at closing rates, are dealt with in
retained profits, net of differences on related currency borrowings. Any other
translation differences are included in arriving at trading profit.


Rates used for translation of results and balance sheets into euro were as
follows:
                     Average for six months to 30th June       As at 30th June
euro 1 =                     2001                   2000       2001       2000

US Dollar                  0.8983                 0.9605     0.8480     0.9556
Pound Sterling             0.6237                 0.6124     0.6031     0.6323
Polish Zloty               3.6321                 4.0732     3.3696     4.1835
Swiss Franc                1.5308                    n/a     1.5228        n/a



2. Geographical analysis

                                                      2001  2001     2000  2000
Analysis by destination
                                                    euro m     %   euro m     %
Sales, including share of joint ventures
Republic of Ireland                                  338.2   7.5    305.4   8.4
Britain and Northern Ireland                         335.4   7.5    354.1   9.7
Mainland Europe                                    1,242.4  27.6    926.2  25.4
The Americas                                       2,580.2  57.4  2,060.0  56.5
                                                   4,496.2   100  3,645.7   100
Less: share of joint ventures                       (78.1)         (89.0)
Group sales                                        4,418.1        3,556.7
Trading profit, including share of joint ventures
Republic of Ireland                                   80.1  28.5     58.9  22.6
Britain and Northern Ireland                          32.0  11.4     32.8  12.6
Mainland Europe                                       59.2  21.1     71.3  27.3
The Americas                                         109.6  39.0     97.8  37.5
Trading profit                                       280.9   100    260.8   100

Analysis by origin

Sales, including share of joint ventures
Republic of Ireland                                  355.8   7.9    320.8   8.8
Britain and Northern Ireland                         327.3   7.3    346.7   9.5
Mainland Europe                                    1,233.6  27.4    918.0  25.2
The Americas                                       2,579.5  57.4  2,060.2  56.5
                                                   4,496.2   100  3,645.7   100
Less: share of joint ventures                       (78.1)         (89.0)
Group sales                                        4,418.1        3,556.7
Trading profit, including share of joint ventures
Republic of Ireland                                   82.6  29.4     62.4  23.9
Britain and Northern Ireland                          29.2  10.4     29.9  11.5
Mainland Europe                                       59.5  21.2     70.7  27.1
The Americas                                         109.6  39.0     97.8  37.5
Trading profit                                       280.9   100    260.8   100



3. Summarised cash flow

The table below summarises the Group's cash flows for the six months ended
30th June, 2001 and 30th June, 2000.

                                                            2001           2000
                                                          euro m         euro m
Inflows
Profit before tax                                          185.9          180.2
Depreciation and goodwill amortisation                     236.4          172.6
Disposals                                                   51.7           13.8
Share issues (net of expenses)                           1,090.9           22.5
                                                         1,564.9          389.1
Outflows
Working capital movement                                   362.3          303.1
Capital expenditure                                        246.8          222.0
Acquisitions and investments                               515.1          931.0
Dividends                                                   68.0           55.9
Tax paid                                                    13.0           49.1
Other                                                       19.2           12.0
                                                         1,224.4        1,573.1
Net inflow/(outflow)                                       340.5      (1,184.0)
Translation adjustment                                   (189.2)         (51.7)
Decrease/(increase) in net debt                            151.3      (1,235.7)



4. Movements in shareholders' funds
                                                                2001      2000
                                                              euro m    euro m

At 1st January                                               3,075.1   2,201.7
Retained profit for the period                                  98.6     102.0
Currency translation effects                                   239.1      57.0
Issue of ordinary share capital (net of expenses)            1,090.9      22.5
Goodwill written back on disposal of Vebofoam                    5.8         -
At 30th June                                                 4,509.5   2,383.2



5. Other
                                                                2001       2000
EBITDA interest cover (times) - six months to 30th June          5.4        5.4
- rolling 12 months                                              6.7        7.8
EBIT interest cover (times) - six months to 30th June            3.0        3.2
- rolling 12 months                                              4.4        5.3

    EBITDA = earnings before interest, tax, depreciation and goodwill
    amortisation, including share of joint ventures

    EBIT = earnings before interest and tax, including share of joint ventures


Average shares in issue (millions)                             488.6   430.8 **
Net dividend per share (cent)                                   6.75    6.10 **
Dividend cover (times)                                           3.8        4.8
** 2000 figures are restated for bonus element of March 2001 1 for 4 Rights
Issue

Depreciation charge - euro m                                   209.3      154.9
Goodwill amortisation charge - euro m                           27.1       17.7
Net debt - euro m                                            2,468.5    2,905.0
Debt ratio                                                       54%       120%
Debt to market capitalisation at 30th June                       24%        39%



6. Distribution of Interim Report

These Interim Results are available on the Group's website (www.crh.com). A
printed copy will be posted to shareholders on Thursday, 6th September, 2001
and will be available to the public from that date at the Company's registered
office. Details of the Scrip Dividend Offer in respect of the Interim 2001
dividend will be posted to shareholders on Thursday, 27th September, 2001.







CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland

Telephone: [phone] Fax: + 353.1.4041007

Email: [e-mail] Website: www.crh.com

Registered Office: 42 Fitzwilliam Square, Dublin 2, Ireland.