10th May 2024 12:55
(Alliance News) - CRH PLC on Friday said its first-quarter outturn improved year-on-year, as the building materials firm hailed "positive pricing" and favourable weather.
The Dublin-based firm also announced it will launch a USD300 million share buyback programme.
CRH shares rose 4.0% to 6,702.00 pence each in London on Friday. CRH in September shifted its primary listing to New York, giving up its FTSE 100 status in the process. It stopped trading on Euronext Dublin altogether.
CRH on Friday said it had a "solid" first-quarter, though it labels the first three months of the year its "seasonally least significant quarter".
Revenue climbed 1.6% on-year to USD6.53 billion from USD6.43 billion. CRH swung to a first-quarter net profit of USD114 million from a loss of USD31 million a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation surged 15% to USD445 million.
CRH said its first-quarter was boosted by "positive pricing, early-season activity & benign weather in key markets".
Analysts at Davy commented: "CRH's Q1 results demonstrate that the business is delivering strongly on both organic and inorganic growth opportunities. Positive pricing and robust demand in the infrastructure and non-residential end-markets are expected to remain tailwinds for the year."
CRH still expects 2024 net income between USD3.55 billion and USD3.80 billion. Net income was USD3.1 billion in 2023, down from USD3.9 billion in 2022.
CRH added: "Our operations in North America are expected to benefit from significant infrastructure activity in our markets and increased investment in key non-residential segments, while in Europe, we expect good underlying demand in infrastructure and key non-residential markets, further supported by disciplined cost control. Residential construction, particularly new-build activity, is expected to remain subdued across our markets in the near-term. Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned for another year of growth in 2024."
The company also announced a new USD300 million share buyback. The programme kicks off on Friday, and will end no later than August 7.
The maximum number of shares that can be repurchased is 60.0 million, it said.
Swiss bank UBS said: "Overall we expect USD2.9 billion of cash distribution to shareholders in 2024."
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Related Shares:
CRH