CRH (CRH) expects cash profits for 2012 to fall from €1.65bn (£1.32bn) to around €1.6bn, following news that like-for-like sales fell in the third quarter. Moreover, following the devastation caused by Hurricane Sandy in the US, business levels there for the building materials group in the fourth quarter are expected to be down, too. Accordingly, stock broker Davy has cut its forecasts by 5 per cent to pre-tax profits of around €650m and EPS to 77¢.
Third-quarter figures showed slowing growth in the US and a faster rate of decline in Europe. However, after the impact of acquisitions, disposals and exchange rate movements, overall sales revenue were up 4 per cent in the first nine months.
CRH already has in place a cost reduction programme, with €150m of savings expected this year and a further €300m by 2015.
