Thursday , May 6 2021

Income at CRH rose 8% to € 2.5 billion over nine months




Albert Manifold, the global chief executive of CRH, who does most of his business outside of Ireland Photo: Gary O & # 39; Neill
Albert Manifold, the global chief executive of CRH, who does most of his business outside of Ireland Photo: Gary O & # 39; Neill

Ellie Donnelly

The CRH building materials group reported earnings before interest, taxation, depreciation and amortization (EBITDA) of € 2.5bn for the nine months to 30 September.

This is an 8pc increase in the same period last year, and a 2% increase on a like-to-like basis, according to trade updates this morning.

Third-quarter sales rose 4% year-on-year to 7.96 billion euros, with EBITDA up 3% to € 1.37 billion in three months.

In America, companies report sustained growth, despite adverse weather conditions in certain markets.

Momentum remains positive in Europe, while demand is increasing in Asia, the group said.

Full-year EBITDA is estimated at around € 3.35 billion, up from € 3.15 billion reported last year.

In the European market the group's EBITDA increased 2% year-on-year in a nine-month period, while in America EBITDA increased 3% year-on-year.

However, in cumulative Asia such as-for-like EBITDA for divisions is 44pc behind, because improvements in prices are offset by higher fuel and electricity costs. This trend is expected to continue for the rest of the year, the group said.

Looking ahead CRH said it expects full year depreciation and amortization costs (before weakening costs) to be broadly in line with last year's figure of € 1.1bn.

The company expects full-year profit before tax from sustainable operations to be ahead of last year's reported figure of € 1.9bn.

CRH also announced the third phase of its share buyback program.

This program will begin today, and will expire no later than December 31, 2018, during which time the group plans to repurchase ordinary shares with a maximum consideration of € 100 million.

Last month the group completed the second phase of its share buyback program, returning € 350m in cash to shareholders. This results in total cash returned to shareholders under a € 1 billion share repurchase program that applies to around € 700 million.

After the third stage concludes the total money returned to shareholders will stand at € 800m.

Online Editor


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