24th Apr 2019 07:41
LONDON (Alliance News) - Building materials firm CRH PLC is to expand its buyback programme, it said Wednesday, with earnings also set to increase during 2019.
CRH has also agreed to sell a European business for over EUR300 million, it announced.
CRH has returned EUR1 billion under its buyback scheme over the past 12 months, including EUR200 million so far in 2019.
Due to its "strong balance sheet and cash generation", CRH has decided to continue this with a further EUR350 million to be returned by the time it releases its financial results for the first half of 2019, due on August 22.
On the trading front, first quarter like-for-like sales grew 7% year-on-year, helped by "milder" weather conditions and good momentum in most markets, as well as pricing progress.
In American Materials, like-for-like first quarter sales were up 4% on a year before on the back of good demand and a strong market.
Aggregates and asphalt sales rose due to milder weather, with the June 2018 acquisition of Ash Grove performing well.
CRH's Europe Materials unit recorded 12% growth in like-for-like sales, helped by "positive trends in a number of key markets", as well as good pricing and again, better weather after "very unfavourable" conditions during the first quarter of 2018.
Building Products started 2019 well, registering 5% growth in like-for-like sales, helped again by improved weather.
For the first half of 2019, CRH expects earnings before interest, tax, depreciation, and amortisation to be above EUR1.5 billion, versus EUR1.13 billion year-on-year.
This will grow both organically and from acquisitions, while currency movements will also provide a boost.
Americas Materials should register like-for-like first-half Ebitda growth, as should Europe Materials, despite Brexit worries in the UK. Building Products Ebitda will also improve year-on-year.
For the second half of 2019, CRH expects Americas Materials to continue to grow, while Europe Materials is guided to be ahead year-on-year but organic sales growth will likely moderate.
Building Products is also guided to grow in all Europe and US business, CRH added, in the second half.
On a group level, CRH expects like-for-like Ebitda in the second half of 2019 ahead of the EUR2.24 billion reported in the second half of 2018.
Elsewhere, CRH said Wednesday it will sell its European Shutters & Awnings unit to StellaGroup for over EUR300 million, under a previously announced EUR1.5 billion to EUR2 billion sales programme.
A review of the future of its Europe Distribution business is ongoing.
So far in 2019, CRH has spent EUR200 million on 16 bolt-on acquisitions or investments.
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