An Irish-owned international building products firm has predicted a drop in profits for the first half of this year.

Materials Group CRH has said it expects takings to fall to €0.6bn compared with €0.67bn in 2007.

The weakening US dollar has been blamed for the fall, in the six month trading statement released by the conglomerate.

However, trading in Europe has improved, with a 5% increase in operating profit predicted, thanks to strengthening business links in central eastern countries.

Poor weather conditions, during May and June, in the US, have also been a contributing factor in a drop in material sales in the states, according to the firm.

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The recent sales forecast comes amid unprecedented acquisitions in Europe and America, which totalled €0.7bn.

CRH announced 35 development initiatives totalling €341m undertaken during the first half of 2008 is on top of investment in My Home Industries and Ancon, announced earlier this year.

"We have implemented significant cost reduction measures over the past 18 months and, as we move into the more important second half, we have intensified our emphasis on operational efficiency and commercial delivery across our businesses," the company said in a statement.

CRH Chief Executive, Liam O'Mahony, said: "The first half of 2008 has seen continuing development momentum with total expenditure of over €700 million. The initiatives announced today consolidate the potential for performance and growth across our operating Divisions, enhancing market presence and leadership positions in the sectors in which we operate."

The Interim Results for 2008 are due to be announced on 26 August 2008.

(PR/JM)