CRH posted a 27% rise in pre-tax profits to £455m for the six months to June, despite a downturn in the US housing market.

Growth from Europe exceeded expectations, where first-half operating profit jumped 50% to £335m. In the US, operating profits fell 2.5% to £187m.

A spokesman for CRH told B&E: “More broadly there has been a recovery in Germany and in the Netherlands where last year it was pretty sluggish. There’s also been good weather at the start of the year, which has meant building work has been able to go ahead, which wouldn’t of been able to go ahead last year. But the underlining fact is that there has been a broader, more positive outlook in Europe. Last Year CRH did very well in the Americas and less well in Europe, so we’ve reversed that. I think it shows the benefits of having a balanced business.”

Commenting on the media speculation regarding CRH’s takeover bid of rival Tarmac, the spokesman said that the firm simply could not rule it out.

He said: “Everyone in the sector will have a look at Tarmac and CRH haven’t ruled themselves out.”

Anglo American bought Tarmac in 2000, and its sale is widely believed to be part of a restructuring process that sees the firm focusing their operations on becoming more of a mining group.