CRH forecasts record 2019 earnings

Ireland-based building materials major CRH predicts that its full-year earnings will expand by 23 per cent to reach a record EUR4.15bn.

The trading outlook follows the company's announcement of its January-September 2019 results. Group sales rose nine per cent YoY to EUR21.8bn in the 9M19. There was a six per cent YoY increase in sales by its Europe Materials division, while Americas Materials sales advanced by four per cent YoY. Building products sales were up three per cent when compared with the 9M18.

In the 9M19 EBITDA increased by 27 per cent YoY to EUR3.2bn, with Americas Materials seeing EBITDA rise by nine per cent. Third-quarter earnings were also helped by favourable weather conditions in North America, particularly when compared with the first half of 2019. Building Products saw its EBITDA advance by seven per cent YoY. The improvement in EBITDA performance of the Europe Materials was more muted, rising by two per cent YoY.

Results were also supported by acquisitions such as the EUR3bn purchase of Ash Grove in the USA. The company has spent an additional EUR700m on deals this year and raised EUR2bn from asset sales, primarily the sale of its European distribution business. The company is also reportedly considering the sale of its Philippines cement unit.

Net debt is forecast to be close to EUR7bn at year-end, leaving its borrowings at “well below” twice EBITDA.