Trading Statement

CRH PLC
06 July 2004

                     N  E  W  S        R  E  L  E  A  S  E


                                                                   6th July 2004


                    CRH PLC PRE-CLOSE INTERIM TRADING UPDATE


CRH plc, the international building materials group, is issuing this trading
update for the half-year ending 30th June 2004, in advance of its closed period.
The Interim results for the six months ending 30th June 2004 are due to be
announced on Tuesday, 31st August 2004.


Overview

Our AGM statement issued on 5th May 2004 indicated that the year had started
well with more normal seasonal weather patterns in Northern Europe and North
America than in 2003 and a continuing good level of acquisition activity across
our operations. Generally favourable trading has continued through May and June
and 2003 acquisitions are contributing well. After an adverse currency
translation effect of euro 4 million, CRH expects to report pre-tax profits for
the six months to 30th June 2004 approximately euro 100 million ahead of 2003's
weather affected euro 161 million.


Republic of Ireland

In Ireland, residential construction grew strongly in the first half while
commercial and industrial activity remained flat. After the expected slow start,
infrastructure activity has accelerated in recent months. While first half
volumes overall show a satisfactory increase on 2003 levels, prices have failed
to compensate fully for cost increases.

As a result, while first half operating profits will be similar to 2003 levels,
margins are likely to show a modest decline.



Britain and Northern Ireland

Although first-half Ibstock brick volumes were slightly below 2003 levels,
consistent with the market, further price improvements were achieved. Our UK
concrete products activities enjoyed good demand. In the Materials Division, our
Northern Ireland operations saw higher activity in the housing and
infrastructure markets and benefited from a strong performance in the
construction division.

Underlying organic profit improvements combined with a slight strengthening of
Sterling is expected to result in a modest first half profit advance in euro
terms.



Mainland Europe - Materials

More normal 2004 weather conditions in Northeast Europe have resulted in a much
better demand backdrop for our Materials operations than in the first half of
2003. Our Polish cement operations had a particularly strong start to the year
and demand post the 1st May VAT increase on building materials has continued at
a satisfactory level. Finland has also benefited from better early weather
conditions. In Switzerland we have enjoyed ongoing strong demand from major
tunnelling works and a good initial contribution from Hastag which was acquired
in January. Although readymixed concrete volumes in Spain declined in the first
half, price improvements and cost efficiencies should give a similar outcome.

Overall, first half profits from Mainland Europe-Materials will show a
substantial improvement on 2003 levels.



Mainland Europe - Products and Distribution

The Products & Distribution Division in Mainland Europe continued to experience
subdued markets in the first half but benefited from internal improvement and
strong contributions from the record 2003 development spend; as a result, first
half operating profits will show a significant advance on 2003.

The Concrete Products Group saw some recovery in residential demand in the
Benelux and enjoyed good first-time contributions from 2003 acquisitions. The
Sand Lime Brick Group acquired as part of the Cementbouw transaction has
performed strongly in the first half. Our Clay Products Group had improved
results in continuing tough markets. Operating profits in the Insulation Group
increased aided by a strong performance in Poland and inclusion of Unidek
acquired in October 2003. In the Building Products Group our Fencing & Security
business benefited from 2003 acquisitions while Daylight & Ventilation profits
improved in continuing difficult markets. Meanwhile, the Concrete Accessories
group formed following the acquisition of Plakabeton in April 2003, has met our
expectations. Our Cementbouw Joint Venture in materials trading and readymixed
concrete in the Netherlands experienced weaker infrastructure markets. The
Distribution Group progressed well with underlying improvements and a
significant contribution from the former Cementbouw distribution operations.


The Americas - Materials

Overall, early season activity in this Division was broadly in line with
expectations and seasonal US$ trading losses were lower than in 2003. We have
entered the seasonally more important second half of the year with strong
backlogs.

In New England activity picked up in May and June after a slow start. Our New
York/New Jersey operations turned in a better performance against a background
of more normal weather conditions than in 2003. In the Central region experience
was mixed, with good early demand in Ohio and Pennsylvania largely offset by a
weak start in Michigan and the inclusion of first time seasonal winter losses
from S.E. Johnson, which was acquired in May 2003. In the West our operations
enjoyed a good start to the season with across the board improvements in this
large geographical region.


The Americas - Products & Distribution

The Products & Distribution Division has had a very strong first half with
residential construction continuing at a good level and ongoing evidence of a
recovering non-residential construction sector.

The improved Precast Group performance evident in the second half of 2003 has
continued into 2004, particularly reflecting the benefits of operating cost
reductions implemented in recent years. The Architectural Products Group
capitalised on good first half demand for retail and hardscape products, and
also delivered improvement at its Glen Gery brick operation and good incremental
contributions from its active 2003 acquisition programme. In modestly improving
non-residential markets, underlying profits in the Glass Group increased
somewhat on last year's levels. The Distribution Group continued to build on the
progress of recent years and, with the benefit of strong markets in the
Northeast, delivered improved margins.


Development

First half acquisition and investment expenditure amounted to approximately euro
700 million. This included the acquisition of a 49% stake in Secil, a leading
Portuguese cement and concrete products producer, as well as 20 other small to
medium-sized acquisitions announced in today's first half Development Strategy
Update released in conjunction with this trading update.


Financial

The Group's cash flow and financial position remains strong and, while
acquisition activity will result in a higher first half interest charge, EBITDA/
net interest cover for the 12 months to end June 2004 will be approximately 13
times.


Outlook

In the US, the economy and overall construction market continue to improve
although, as always, there are regional variations. Economies in Europe, though
generally subdued, are showing signs of progress. Risks and challenges remain,
particularly with continued high energy prices, and we maintain our focus on
operational performance and the recovery of higher input costs.

A continuation of the current US$/euro exchange rate of $1.23 would result in a
full year average rate of $1.23 (2003: $1.1312). This, combined with other
lesser currency effects, would have an adverse full year impact of approximately
€32 million on pre-tax profits compared with 2003, predominantly arising in the
second half of the year.

Our second half performance last year was boosted by catch up from a weather
affected first half and provides a challenging base for comparison. However, CRH
has had a strong first half in 2004, and we anticipate that full year profit
before tax will show a healthy advance on the reported 2003 level of euro 864
million.

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 analyst's conference call at 8.00 a.m. BST on 6 July 2004 to
discuss this statement and the accompanying 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 6 July 2004 by dialling [phone]. The
security code for the replay will be 923252.



Contact CRH at Dublin 404 1000 ([phone])


Liam O'Mahony Chief Executive
Myles Lee Finance Director
Maeve Carton Group Controller




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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