Building materials giant CRH today warned it would be difficult to meet its goal of growing profits this year after a weak dollar and slowing markets hit earnings in the first four months.
"The further depreciation of the US dollar over recent months, together with weaker trends in a number of markets, has made our goal of achieving another year of profit and earnings growth more challenging," it said.
CRH, one of the world's biggest suppliers to builders, had previously predicted a 16th consecutive year of earnings growth.
The group said overall profitability in the January-April period, which traditionally accounts for only a small proportion of annual profit before tax, lagged a "very strong performance" in the early months of 2007.
"CRH's profitability and cashflow remain well underpinned by its geographic, sectoral and product balance as we move into the busier and more significant trading months," it said in a statement ahead of its annual shareholder meeting.
The Dublin-based group said overall results this year for its European business were similar to 2007.
"Overall for the Americas, results are behind 2007 mainly reflecting continued difficult trading in residential markets," it said.
Shares in CRH have fallen around 37 per cent from a lifetime high last July, hit by an end to Ireland's decade-long property boom and fears over weakening construction in the United States, a key market.
"The statement illustrates the difficult conditions in both Europe and the Americas," Davy analyst Barry Dixon wrote in a research note.
"We had forecast 4 per cent growth in operating profit in the first half and 1.7 per cent for the full year. These forecasts now appear optimistic," Mr Dixon said.
Goodbody Stockbrokers said it would trim its forecasts. Shares in CRH were trading 0.75 per cent lower at €23.828 by 11.05am compared with a flat wider Irish market. Its London shares were 1.5 per cent lower.
The group has aimed to develop through acquisitions and by expansion into Asia and central and eastern Europe.
CRH said it had spent about €350 million ($542 million) on acquisitions this year and expected to complete a further €850 million of deals announced in China, India and the United States in 2008.
The group spent €2.2 billion on acquisitions in 2007 and chief executive Liam O'Mahony repeated in March he would be disappointed if the group could not maintain at least the same rate this year.
Agencies