Trading Statement

CRH PLC
30 June 2003

                      N  E  W  S      R  E  L  E  A  S  E

                                                                  30th June 2003



                      CRH PRE-CLOSE INTERIM TRADING UPDATE





CRH plc, the international building materials group, is issuing this trading
update for the half-year ending 30th June 2003, in advance of its close period.
The Interim Results for the six months ending 30th June 2003 are due to be
announced on Tuesday, 2nd September 2003.



Overview



Our AGM statement issued on 7th May 2003 highlighted the generally unfavourable
weather conditions experienced across our operations in the first four months of
the year and the impact of a weaker US dollar, which adversely impacts the
translation of CRH's US profits into euro. Against this background, and with
continuing unseasonal US weather patterns through May and June, CRH expects to
report pre-tax profit in the range euro 155 million to 160 million for the six
months to 30th June 2003. This compares with pre-tax profit of euro 196 million
for the six months to 30th June 2002. Currency translation effects will account
for approximately euro 10 million of this reduction.



The second half of the year is traditionally significantly more profitable for
CRH than the first six months, mainly due to the marked second half bias in the
activity levels and profitability of our US operations. Profit before tax for
the full year 2002 amounted to euro 856 million of which euro 660 million was
earned in the second half of the year. Given a return to normal weather for the
remainder of 2003, we expect that, before currency translation effects, full
year profit before tax will be ahead of last year.



Republic of Ireland



The trends in construction demand evident in the second half of 2002 have
continued through the first half of 2003 boosted by very favourable weather
conditions in March and April. Residential construction has been particularly
buoyant resulting in double-digit percentage increases in cement, concrete
blocks and readymixed volumes. Activity on major infrastructural projects under
the National Development Plan has continued at a good pace through the first six
months although completion of a number of major projects has resulted in a small
decline in blacktop volumes compared with 2002. Commercial and industrial
construction continued weak during the period. Overall, we anticipate higher
profits for the first half of 2003.



Britain and Northern Ireland



Ibstock brick volumes in the first half of 2003 were broadly in line with the
2002 level. A combination of achieved price increases together with the benefits
of a more favourable natural gas supply contract are likely to offset the impact
of increased costs. Our UK concrete activities enjoyed good demand and expect to
report improved first half profits as does our insulation business. In the
Materials Division, residential demand in Northern Ireland continues at a
reasonable level and, after a slow start, road maintenance activity has picked
up in recent months.



Compared with first half 2002, the euro was on average approximately 9% stronger
versus Sterling in the first half of 2003 which gives rise to an adverse
translation impact at operating profit level for the first half of 2003. Thus,
although underlying first half profits are expected to be ahead in Sterling
terms the translation impact is likely to result in lower euro profits.



Mainland Europe



Trading patterns in Mainland Europe in the first half of 2003 have been
generally weak exacerbated by an exceptionally cold first quarter in
Northeastern Europe.



The Materials Division has been most impacted by the severe winter conditions
and first half operating profits will be lower than last year's level. Cement
demand in Poland was severely affected in the first quarter and although demand
improved in the second quarter, first half volumes registered sharp declines
with a consequent impact on operating profit. Our Finnish operations have also
suffered first half volume and profit declines although to a lesser extent than
in Poland. Our Swiss companies experienced more normal seasonal demand levels,
however, with a slowing economy profits have lagged 2002 levels. In Spain, our
operations have seen further strong volume gains, but a very competitive market
is expected to result in a first half outcome similar to last year. Despite
ongoing political unrest, our 25% Israeli joint venture has performed well.



Our Products and Distribution Division is expected to report similar profits to
2002 reflecting the incremental benefit of 2002 and 2003 acquisitions. The
Concrete Products Group continues to be affected by general weakness in
residential and commercial markets but, helped by the inclusion of EHL (acquired
May 2002) and Douterloigne (acquired August 2002), expects similar first half
results to 2002. In both the Clay Products and Insulation Groups, markets have
remained difficult resulting in little change in operating profits compared with
2002. In the Building Products Group, our Fencing & Security group has
maintained underlying profits while benefiting from the inclusion of Adronit
(acquired March 2003). The Daylight & Ventilation activities continue to
experience a difficult German market. The inclusion of Plakabeton, the
Belgian-based metal building accessories business acquired in April 2003, will
contribute modestly to first half results. Operations in our Distribution Group,
which in the full year 2002 accounted for 53% of this Division's sales and 43%
of its operating profits, have started the year well.



Overall, first half profits from Mainland Europe are expected to be slightly
lower than last year.



The Americas



In the Materials Division, while there are regional variations across the
country, overall state lettings have continued at a stable level and order books
are good. Exceptionally wet weather in the Northeast and Midwest during the
second quarter has delayed the commencement of the construction season; however,
our operations in the Western states have enjoyed more normal conditions. As a
result, the first half US dollar outcome for this Division is expected to be
lower than in 2002.



The Products and Distribution Division has also been impacted by poor weather
which has restricted both residential and non-residential construction activity
and product shipments. The Precast Group has suffered most against a backdrop of
continuing declines in non-residential construction. The Architectural Products
Group has to date seen a slower than anticipated pick up in seasonal homecentre
demand, due to wet weather, and lower brick sales, largely as a result of
slowing activity in high-end residential construction. However, both the Glass
and Distribution Groups have continued to perform well. First half profits in US
dollar terms for this Division are also expected to show a reduction on 2002
levels.



The average US dollar profit and loss account translation rate for the first
half of 2003 is US$1.105 to the euro compared with US$0.8979 in the first half
of 2002 which gives rise to an adverse translation impact at operating profit
level for the Americas for the period. This combined with the adverse weather
conditions experienced in the first six months of 2003 is expected to result in
first half euro operating profits from the Americas being significantly lower
than last year.



It should be noted that due to the marked seasonality of our US businesses, over
80% of CRH's US dollar operating profits are typically generated in the second
half of the year.



Financial



The Group's cash flow and financial position remains strong. This, combined with
the favourable translation impact primarily from the weaker dollar, will be
reflected in a lower first half interest charge and EBITDA/net interest cover
for the 12 months to end June 2003 in excess of 12 times.



Development



Our development teams continue to deliver an ongoing strong deal flow with
acquisition activity in the first half of 2003 amounting to over euro 550
million. This comprises the purchase of S.E. Johnson, announced on 16th May, and
19 small to medium sized bolt-on deals announced in today's first half
Development Strategy Update released in conjunction with this trading update.



Outlook



As we move into the significantly more profitable second half of the year the
traditional pick-up in activity levels is now well underway. While markets are
likely to remain difficult for the remainder of 2003, we anticipate that, given
normal seasonal weather patterns, underlying second half activity levels will be
broadly similar to 2002.



We anticipate higher full year US profits in local currency terms, but the
weaker US dollar will have a more significant adverse impact than in the first
half due to the marked second half bias of US profitability. A continuation of
the current US$/euro exchange rate of $1.14 would result in a full year average
rate of $1.12 (2002: $0.9456) which, combined with the projected average rates
for other currencies versus the euro, would have had an adverse full year impact
of euro 85 million, equivalent to approximately 10% of last year's pre-tax
profit level. Notwithstanding the current weakness of the US dollar, we are
convinced that economic prospects in the United States remain positive.



We continue our strong focus on cash generation, cost control, efficiency
improvements and the recovery of higher input costs and on delivering a further
good level of development spend in the second half of the year. At this stage it
seems likely that these measures will not be sufficient to offset the adverse
currency translation impact of the stronger euro on our results for the year as
a whole. However, we expect that, before currency translation effects, profit
before tax will be ahead of last year.

                                     -----



This trading update 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 8.30 a.m. BST on 30 June 2003 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 10:30 a.m. BST on 30
June 2003 by dialling [phone]. The security code for the replay will be
244696#.





Contact at Dublin 404 1000 ([phone])



Liam O'Mahony Chief Executive
Harry Sheridan Finance Director
Myles Lee Finance Director - Designate





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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