12th Nov 2013 09:11
LONDON (Alliance News) - Buildings materials group CRH PLC Tuesday said third quarter like-for-like sales had increased by 2%, rebounding from the 6% reduction reported in its half-year results due to bad weather conditions.
In an interim management statement, CRH said trading conditions improved across its international arms with positive trends in the US and Europe.
In the US, the company's infrastructure-related activities faced unfavourable weather conditions in July and early August. However, it said, conditions picked up through September.
Including the net impact of acquisitions, divestments and exchange rate movements, overall sales revenue of EUR5.4 billion for the quarter was 2% ahead of last year compared with a restated total of EUR5.3 billion in the 2012 period.
Cumulative group revenue of EUR13.4 billion to end-September was 1% lower than a restated 2012 figure of EUR13.6 billion.
Third quarter earnings before interest, depreciation and amortisation (EBITDA) was up 3% on 2012 despite what CRH called "adverse currency translation effects." The company said it expects second half EBITDA to be in line with last year.
During the three months to end September, CRH completed six deals which brought total acquisition and investment spending to EUR660 million.
About a quarter of these were in "developing" regions mainly India, China and Ukraine, it said.
CRH said it expects to achieve savings of EUR195 million in 2013 as a result of a cost-reduction programme in its European operations. It said it would incur further costs of EUR70 million in implementing additional savings measures in 2014 and 2015.
Net debt stood at EUR4 billion compared with EUR3.5 billion a year earlier, and in the absence of further acquisitions for the remainder of 2013, and based on current exchange rates, CRH said it expected year-end debt to be approximately EUR3.2 billion.
The stock was trading at 1,606.14 pence Tuesday morning, up 55.00 pence or 4.0% making it one of the biggest gainers on the FTSE100.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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