Against this backdrop CRH now expects that EBITDA for the seasonally less profitable first half of the year will show a decline of approximately 20%. First-half profit before tax is expected to be close to breakeven after restructuring costs of approximately €30million during the period.
In the first half of 2010, the group completed 13 acquisitions at a total cost of €133million across the Materials segments in the US and Europe, and is investing a further €19million in Yatai Cement as CRH's share of equity funding for two development projects in north eastern China.
In addition to its normal capital expenditure programme, during the first half of 2010 the group has initiated three capital projects involving total expenditure of €84million over a three year period, with the aim of enhancing the efficiency of its cement operations in Poland and India and expanding aggregates capacity in the US.
With the benefits from cost reduction initiatives, lower restructuring costs and the favourable translation impact of the weaker Euro, CRH expects that EBITDA in the seasonally more important second half of the year will be ahead of 2009.
