CRH 1Q18 underlying sales slip 2%

A GBP16.5m (EUR19m) deal was concluded with CRH in the early part of 2018, whereby Breedon acquired four quarries and an asphalt plant in Britain in exchange for 27 ready-mixed batching plants and GBP4.9m (EUR5.6m) in cash.

CRH's underlying sales in the 1Q18 declined by around two per cent, with European turnover also being off by two per cent. The Americas turnover slipped three per cent while in The Philippines there was a five per cent decline. Group EBITDA in 1H18 are expected to be similar to the comparable EUR1020m achieved during the 1H17. First-half results will be announced on 23 August 2018.

Heavy building materials volumes in Great Britain were lower during the first quarter as they suffered from unfavourable weather, but prices did improve in cement and aggregates. Irish and French volumes suffered from adverse weather conditions, but prices in both countries were ahead. Dutch volumes were ahead, as were Swiss cement volumes, but prices remained under pressure. German volumes suffered from poor weather, but prices improved. Polish cement volumes suffered from poor weather, but prices advanced. Finnish cement volumes increased but pricing faces competition from imports. In Romania and Ukraine volumes suffered from poor weather, but prices improved. In lightside, like-for-like sales were three per cent ahead and only modestly affected by the poor weather. Distribution was one per cent down, with volumes increasing in the Netherlands and Germany, but remains weak in Switzerland. 

The first-quarter north America turnover from the US states and Canadian provinces where CRH is active declined by three per cent because of harsh winter weather. Aggregates and asphalt volumes fell, but ready-mixed concrete volumes improved. Suwannee American Cement, which is now 80 per cent-owned, performed in line with expectations. Overall volumes were some two per cent lower than in the previous year. In building products, turnover was three per cent below that of last year, with only the pre-cast operations showing an improvement, thanks to good demand in the west. In Asia the Philippines suffered from a notably competitive market.