Strong growth from all its geographical areas pushed CRH's pre-tax profit up by 26 per cent from £201.6 million in 1996 to £253.2 million in 1997. The results are better than market expectations, although, after a strong run in recent days, the share price fell 16 1/2p to 953 1/2p yesterday.

The company is valued at £3.7 billion, despite the slip in the share price. This makes it among the top four or five building materials companies in the world, said finance director, Mr Harry Sheridan.

Reflecting real growth, earnings per share have risen by 19 per cent from 42.06p to 50.24p. Earnings would have been 52p without a changed accounting policy. Cash flow per share had a similar growth to 76.9p and shareholders are receiving a rise in the final dividend from 7.12p to 8.25p, making a total of 11.7p compared with 10.2p.

Strongest growth came from the North American operations which notched up a 40 per cent increase in trading profit to £135.0 million. This was followed by Britain and Northern Ireland, with a 37 per cent rise to £20 million and Ireland, which grew by 18 per cent to £67.4 million. In contrast, trading profit from mainland Europe only managed a 3 per cent rise to £48.1 million. Currency translations, however, reduced these profits by £4 million.

The North American operations now account for 50 per cent of trading profits and 51 per cent of sales. Reflecting the buoyant US economy, its subsidiary, Oldcastle had record sales of dollars 2.5 billion and trading profit of dollars 205 million. The south, mountain states and north west continued to be the strongest, with ongoing recovery in the north east and California, the group said. Canada 'was generally steady'.

The growth was also attributed to tight cost control and the successful integration of the dollars 500 million plus acquisitions made in 1996.

These, CRH said, performed well up to expectations. The group's US pre-cast division enjoyed increases in sales and profits reflecting strong performances from existing operations and benefits from the phased facility upgrade and expansion programme. The architectural products division achieved 'significant increases in sales and profits'. Capital expenditure led to lower costs and higher capacity.

The materials division, which purchased Tilcon - its largest ever acquisition - achieved its aims. These included cost reductions at Tilcon and an asset disposal programme.

The glass division recorded further gains. Capacity was enhanced. Sales and profits in the distribution division were in line with expectations. CRH's operations in the domestic market benefited from the buoyancy in the economy, which was particularly noticeable in new construction. Housing completions reached an all time high of around 38,000 units, but were was constrained by the lack of serviced sites.

Irish Cement had an 'excellent' year and maintained its market share of 60 per cent in the whole of Ireland (it has about 80 per cent of the market in the Republic). Further capacity is coming on stream this year at Platin and Limerick.

The Roadstone and Wood companies experienced strong demand. However, intense competition led to pressure on margins. Nevertheless profits were higher due to a surge in sales volumes. Although sales volumes increased at Premier Periclase, margins declined due to over-capacity and a cost reduction programme has been implemented.

Profits from its British operations were 'significantly higher' leading to better margins. Forticrete made 'significant' progress while Keyline Builders Merchants had a 'much improved year, producing record profits'.

In contrast, market conditions in Northern Ireland were difficult. Over-capacity continued to put pressure on margins and profits fell. Mainland Europe was affected by currency translations. Overall the business performed strongly with favourable market conditions in the Benelux countries and Spain, but conditions remained poor in France and Germany.

The Van Neerbos Group had varying results from its six divisions. The concrete paving businesses, Struyk Verwo in the Netherlands and Marlux in Belgium traded 'very satisfactorily'. Heras Fencing had solid progress with record sales and profits. CRH Kleiwaren had its best-ever year. And in Spain, Beton Catalan showed some improvement but there is still intense competition.

In Germany AKA Ziegelwerke faced intense competition and incurred a loss.

Its MAX-MAT joint venture in Portugal had a good performance. And in France, Materiaux Service increased its profits.