The world’s second-biggest distributor of building materials, CRH Plc, has reported pre-tax profits of €670 million for the first half of 2007, an increase of 27 per cent.

Earnings per share grew by 26 per cent and a higher interim dividend of 20 per cent was declared.

Acquisitions and increased cement sales in Ireland, Switzerland and Poland have boosted sales. The company was also enhanced by the Irish government’s ongoing drive to improve infrastructure, which helped to offset weaker demand from residential construction in Ireland.

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The Irish-based company does around half of its business in America and its shares have been hit by growing fears about the wider recession in the US construction market.

However, CRH made €22m on the sale of property assets in the period and expects the total for the year to beat last years €40m.

Myles Lee, CRH's Finance Director, said that the company was selling less concrete, bricks and roofing materials as fewer new homes were being built.

He added that this had been "exacerbated by the sub-prime fallout" because of the decreasing availability of mortgages amid the ongoing credit crunch.

Chief Executive of CRH, Liam O’Mahoney said it has had a ‘robust performance’ despite the sub prime mortgage crisis in the US.

Around 22m euro was made on the sale of property assets for the first half of 2007 and it is expected to beat last year’s 40m euro for the whole year.

(JM/SP)