24th Nov 2020 09:15
(Alliance News) - CRH PLC said Monday it delivered a robust performance in a challenging trading environment in the third quarter, and expects earnings to grow in 2020.
Shares in the Dublin-based building materials group were 1.0% higher in London on Tuesday morning at 2,977.00 pence each.
For the nine months to September 30, like-for-like sales were down 3% to USD20.6 billion, but earnings before interest tax depreciation and amortisation rose 2% to USD3.4 billion, with an Ebitda margin up one percentage point at 16.6%.
For the third quarter alone, like-for-like sales also fell 3%, but Ebitda was up 3%.
Third-quarter sales in the firm's Materials business in the Americas down 7% and European sales down 2%. CRH's Building Products unit partially offset this in the third quarter, growing 4%. Ebitda was up 3%, 2% and 5% in the three units respectively in the quarter.
CRH said its Building Products unit benefited from strong residential repair and maintenance & improvement demand, particular in North America. The poor performance from the Materials unit in the Americas was blamed on unfavourable weather conditions.
Looking ahead, CRH expects full-year earnings before interest tax depreciation and amortisation to be "in excess" of USD4.4 billion for 2020. CRH posted Ebitda of USD4.0 billion in 2019, suggesting a 10% improvement.
CRH also expects annual pretax profit to be ahead of the USD2.2 billion figure posted in 2019. For now, there is limited visibility into 2021, however, the longer-term prospects for CRH remain positive, the company added.
"Markets continue to be impacted by the global pandemic and while we have seen some lower activity levels, I am pleased to report further improvement in trading performance, with an advance in both profitability and margins. The outlook for the coming months remains uncertain and visibility is limited, however, I am confident that we are well-positioned for the challenges and opportunities that lie ahead," Chief Executive Albert Manifold said.
By Paul McGowan; [email protected]
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