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Europe Materials,Americas Materials and Americas Products & Disbution all achieved significant profit growth, while in Europe Products & Disbution, where contributions from acquisitions were offset by weakness in the core Dutch market and continued first-half raw material cost pressures in our Insulaton business, the outcome was slightly lower than 2004.The performance of each of these Divisions is dealt with in some detail in their individual Operations Reviews.
With generally better economic activity in its major countries and continuing tight cost control in very competitive markets,Europe Materials achieved good advances in most of the territories in which it operates.In Finland and the Baltics, robust economic growth translated into better activity levels and increased profits.Poland had a strong second-half recovery from a very slow weather-affected first half and finished the year with good momentum and with volumes and profits ahead.Switzerland had a good year,with results broadly similar to 2004.In Spain,ongoing strength in housing and infrastructure led to further improvements in the outcome,while our Portuguese joint venture Secil,despite a flattening domestic market,delivered a satisfactory first full-year contribution.Irish profits advanced somewhat;a combination of increased public and commercial activity in Northern Ireland together with continued very strong housing and infrastructure markets in the Republic of Ireland,where commercial activity also continued to recover.
The most difficult markets faced by CRH in 2005 related to the Europe Products & Distribution Division.The Netherlands,which accounts for approximately half the sales of this Division,had very anemic economic growth;the residential sector was the brightest spot,continuing to recover from recent lows,but consumer confidence was weak,adversely affecting DIY sales.The German economy was particularly weak,but surrounding countries did somewhat better,while in the UK,brick demand was down.Ongoing cost initiatives were a factor across our businesses.Against this background,Concrete Products reported similar profits,with acquisition contributions and gains in the structural division outweighing weakness in our architectural business.In Clay Products,lower UK volumes were offset by stronger Mainland Europe activity and gains in pricing and cost effectiveness.Our growing Building Products division performed well,but Insulation showed further significant declines,due to restructuring costs and continued first-half input cost volatility which eased somewhat in the second half.Despite the very difficult market backdrop,our extensive Distribution group achieved record results;improvements in Portugal,Switzerland and France together with strength in Dutch builders merchants and acquisition contributions more than offsetting the Benelux DIY weakness.

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