Trading Statement

CRH PLC
05 July 2006

                            N E W S   R E L E A S E

                                                                     5 July 2006

                         CRH PLC INTERIM TRADING UPDATE

CRH plc, the international building materials group, is issuing this trading
update for the half-year ended 30 June 2006. The Interim results for the six
months ended 30 June 2006 are due to be announced on Tuesday, 29 August 2006.

Overview

Our AGM statement issued on 3 May 2006 indicated that overall trading in the
first four months had been favourable with in particular a strong start from our
operations in the Americas. Through May and June, our American businesses have
continued to perform strongly and, despite subdued trading in a number of major
markets, our European operations have made progress. As a result, with an
improved performance in each of our six business segments, CRH expects that
profit before tax for the six months to 30 June 2006 will increase by
approximately one-third compared with the reported 2005 outcome of euro 383
million.

Europe Materials

Overall Irish construction activity improved further in the first half of the
year resulting in satisfactory volumes while the impact of higher input costs is
being offset by continuing phased price recovery. Our operations in Finland have
had a strong start helped by broad-based construction demand. As expected, the
completion of a major infrastructure project has led to a decline in our first
half cement volumes in Switzerland; however this has been compensated by an
improved performance in our downstream businesses. Construction demand in Poland
has recovered rapidly from a weather-affected start resulting in better
profitability across our operations. In Ukraine, sharply higher gas costs have
been counterbalanced by improved pricing, and the capital project to convert
from gas-fired kilns to coal is scheduled for completion before the end of the
year. In Iberia, our Spanish operations have enjoyed a favourable start to the
year although higher input costs have led to a slight decline in overall margin.
While our Portuguese joint venture has faced reduced cement demand in its home
market, the impact has been offset by increased cement exports and a stronger
outcome in its downstream operations.

First half operating profit is expected to show a broad-based improvement on the
2005 level.

Europe Products

Despite continuing subdued markets our Products activities overall have seen a
gradual pick-up in underlying demand through the first half of the year.

In Concrete Products, our Structural operations (floor & wall elements, beams,
vaults and drainage products) are benefiting from stronger demand in Benelux,
France and Denmark while the sand-lime brick business has continued to perform
well. After a slow start to the year, Architectural operations (pavers, tiles
and blocks) in Benelux, France and Germany have seen an improvement in demand in
recent months. With benefits from 2005 acquisition activity and organic growth,
overall profitability in Concrete Products is expected to show a strong first
half advance.

In Clay Products, production shut-downs in our UK and German operations over the
winter months, implemented in order to better balance supply and demand and to
avoid seasonal price peaks in volatile winter gas markets, had an adverse impact
on profitability in the early months. As a result, and despite May/June results
being ahead of 2005, first half operating profit for these operations is
expected to be lower than last year.

In Building Products, our Insulation activities have benefited from 2005's
restructuring initiatives with an improved performance. Our Fencing & Security
and Daylight & Ventilation operations are performing to expectations against a
backdrop of very competitive markets and higher input costs. Construction
Accessories continues to perform well and is benefiting from an active 2005
development programme and the Halfen-Deha acquisition which was completed in
early May.

Overall, we expect a much improved first half performance helped by good
incremental contributions from 2005 and 2006 acquisitions complemented by
organic growth.

Europe Distribution

Although a pick-up in overall Dutch retail sentiment has been evident since
early in the year, it is only in recent months that these trends have been
reflected in demand across our DIY operations. In consequence, first half
results from our Benelux DIY businesses are expected to be broadly similar to
2005. More positively, the first half of 2006 has seen improving momentum in our
Builders Merchants businesses in the Benelux, France and Switzerland with good
underlying profit improvement. Quester, the leading Austrian builders merchant
acquired in October 2005, experienced somewhat disappointing trading in the
early months of the year; as a result, and despite some improvement in recent
months, its contribution to first half profit growth will be modest. Bauking,
the German builders merchant and DIY operator in which CRH acquired a 48% stake
last December, is performing to expectations.

Overall first half operating profit in Europe Distribution is expected to show a
strong improvement on 2005 levels, with the bulk of the advance generated from
underlying operations.

Americas Materials

Despite heavy rains in parts of the east and mid-west in the latter weeks of
June, first half demand in the Americas Materials Division has exceeded
expectations helped by a mild winter which facilitated early private sector
construction activity. Overall volumes were satisfactory with in particular a
continuing strong performance in the west. Our ongoing focus on effective
pricing strategies to offset the impact of higher energy and input costs has
resulted in good first half sales price increases and improved margins. The
Mountain Companies businesses acquired at end-October 2005 are performing well
but due to seasonal trading patterns will have little impact on the first half
profit outcome.

With better volumes and margins the outcome for the first half of the year is
expected to show a good improvement on 2005, resulting in an operating profit
for the period compared with the more traditional first half seasonal loss.

Americas Products

Annual revenues from our Products operations are broadly divided 40%
Residential, 45% Non-residential and 15% Infrastructure. These businesses have
enjoyed an excellent first half helped by generally favourable weather, good
levels of US housing activity and further improvement in US non-residential
construction demand.

Our Precast Group, which is a leading manufacturer of precast, pre-stressed and
polymer concrete and concrete pipe, has benefited significantly from continuing
broad-based growth in non-residential construction and good infrastructure
demand.

Despite some moderation in residential activity, our Architectural Products
Group (APG) continues to generate good overall organic growth combined with
benefits from 2005 acquisitions. APG's Glen-Gery clay brick operation achieved
strong price increases; however, these were not sufficient to offset fully the
impact of higher energy costs.

The Glass Group, which derives almost 80% of its revenues from the
non-residential segment, has enjoyed significant first-half organic growth
helped by a continuing shift towards higher-margin segments in laminated and
insulated glass.

Integration of MMI, our new US product platform in fencing products, welded wire
reinforcement and construction accessories acquired at the end of April, is well
under way and we are optimistic regarding the medium-term development
opportunities for this largely non-residential oriented business.

Our South American operations are ahead of expectations to date in 2006.

Overall, these activities are expected to deliver a strong first half profit
advance with a further improvement in overall operating margin, notwithstanding
some dilution resulting from MMI's lower margin businesses.

Americas Distribution

Following its record performance in 2005, the Distribution Group has experienced
continued positive trading conditions through the first half of the year in both
its roofing & siding and interior products segments. With an estimated 65% of
revenues generated in the repair, maintenance and improvement (RMI) segment,
moderation in new housing demand has had little adverse impact on business to
date while the Florida market has remained particularly buoyant.

First half operating profit is expected to show a substantial profit advance
with an improved margin, reflecting strong incremental acquisition contributions
and organic growth.

Development

First half acquisition and investment activity amounted to approximately euro
800 million. This includes the purchase of MMI and Halfen-Deha, along with 34
other acquisitions across our various product segments. Details of these latter
transactions are provided in the accompanying Development Strategy Update
released today. The Group's pipeline of potential development opportunities
remains strong and the due diligence review under the exclusivity agreement with
Ashland, Inc., announced on 19 June, which may lead to the acquisition of
Ashland Paving and Construction, Inc., is continuing.

Financial

The Group's cash flow and financial position remain very strong. While higher
short-term interest rates and the substantial acquisition activity completed
over the past year will result in a significant increase in net finance costs
compared with first half 2005 (2005 - euro 78 million), EBITDA/net interest
cover for the 12 months to end June 2006 is expected to be well in excess of 11
times.

Outlook

In the US, the economy and overall construction market continue strong although,
as usual, activity levels vary by region. While US housing construction is
moderating, activity remains at a strong level; non-residential construction is
continuing to grow and highway markets are robust, although as in 2005 we may
see some modest late season volume impact as a result of higher product prices.
In Europe, recent months have seen the emergence of somewhat firmer demand in a
number of previously subdued economies with ongoing momentum in the more
strongly performing countries. The continuing successful recovery of significant
energy cost increases remains a major focus across our operations.

Based on a continuation of the current US$/euro exchange rate for the remainder
of 2006, the translation impact on full year profit before tax compared with
2005 will be minimal.

CRH has had a particularly good start to the year. The current business outlook
is on the whole positive and, while as always risks remain, we expect good
profit growth in the more significant second half of the year leading to a
healthy advance for 2006 as a whole.

________________________________________________________________________________

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 analysts' conference call at 8.00 a.m. BST on 5th July 2006 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
10.00 a.m. BST on 5th July 2006 by dialling [phone]. The security code
for the replay will be 707628.
________________________________________________________________________________

Contact CRH at Dublin 404 1000 ([phone])
Liam O'Mahony       Chief Executive
Myles Lee           Finance Director
Eimear O'Flynn      Head of Investor Relations
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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