BUILDING MATERIALS GROUP CRH has reported a pre-tax 77% slip in profits, compared with the same period last year.

Read CRH’s Interim Report 20101 here.

CRH posted pre-tax profits for the first six months of 2010 at €25m, a fall against last year’s positive return of profits of €108m.

Shares in the company have plunged following CRH warning that construction sector weakness would push down 2010 EBITA – earnings before interest, tax, depreciation and amortisation (the paying off of debt) – by 20%, from €651m to €520m.

First-half earnings per share fell 79% to 2.6c from 12.2c in 2009. Operating profit fell by 51% to €118m.

However, CRH said the 2010 interim dividend remains at 18.5 cent – in line with last year’s level.

During the first six months of 2010, the CRH spent €159m on 14 acquisitions and investments.

CRH’s Chief Executive Myles Lee said:

European economic indicators have been more encouraging although uncertainties remain; however, concerns relating to the recovery in the United States have increased with a continuing flow of disappointing economic data…

He added:

Arising from this we currently expect that full year Group EBITDA will show a decline of around 10% compared with the 2009 level of €1.8 billion.