CRH expects U.S. profit boost but says Europe remains challenging
26/04/2023 08:01
DUBLIN, April 26 (Reuters) - Building materials giant
CRH CRH.I expects sales, earnings and margins to rise in the
first half after a particularly strong start to the year in the
United States, though the European backdrop remains challenging.
CRH, which makes about 75% of its profits in the United
States, announced plans in March to buy back shares worth $3
billion, a more than threefold increase on last year after
record sales and profit for 2022.
It said on Wednesday that sales in its two main U.S. units -
Americas materials solutions and Americas building solutions -
were up 10% and 22% respectively year on year in the seasonally
quieter first quarter.
It cited robust pricing in materials solutions and both good
pricing progress and resilient underlying demand in building
solutions, where it is a major player in water, energy and
communications infrastructure projects.
"In our Americas segments we expect robust infrastructure
demand, good activity in key non-residential segments, continued
pricing progress and positive contributions from acquisitions
(in the first half)," CRH said in a trading update.
Sales in Europe materials solutions were up a more modest 6%
while Europe building solutions revenue fell 1%.
CRH said that a more challenging backdrop in Europe is being
driven by continued inflationary pressures and some slowdown in
the new-build residential sector.
After recommending moving its primary listing to the U.S. in
March, the Dublin-based company said it would seek shareholder
approval to do so at an emergency general meeting on June 8.
(Reporting by Padraic Halpin
Editing by David Goodman
)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))