The pace of decline in the European construction sector is easing, that's according to one of Ireland's leading materials suppliers.

Building group CRH said business had remained difficult, with a like-for-like decline in the third quarter.

However, group sales of 19% reflected a small improvement on the 21% fall recorded for the first half of the year.

-- Advertisement --

CRH said cost reduction measures, combined with more moderate year-on-year energy-related input costs, resulted in an easing in the rate of profit decline in the third quarter.

Group earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter of 2009 declined by around 25% compared with a reported 41% decline for the first half of the year.

CRH's trading up reported a strong cash flow in the third quarter.

There was a €0.9bn reduction in net debt from €5.1bn at 30 June to €4.2 billion at 30 September 2009.

This figure comprised gross debt of €5.5bn and cash and liquid investments of €1.3bn.

(PR/BMcC)