CRH off to strong start to 2016 as sales jump 9pc
Sales at building materials group CRH increased by 9pc in the first three months of the year as the company expects earnings before interest tax depreciation and amortisation (EBITDA) to near €1bn in the first half of the year.
CRH said the increase in sales was largely driven by continued positive momentum in the Americas. Good weather in the region helped grow volumes in a typically more quiet time for the firm.
Strong growth in demand for cement in the Philippines pushed sales up 12pc year on year in Asia.
Looking ahead into the second half of the year CRH said it expects improvements across its main markets.
"In the United States, we expect construction demand to continue to grow in the second half of the year at a modest pace. Funding for US infrastructure is expected to increase moderately with improving State finances and the passing in 2015 of a new federal programme (FAST Act), while we expect housing and non-residential construction to continue to grow; as a result we expect progress in the Americas," the company said in a statement.
During the first three months of the year CRH completed asset disposals and divestments with a combined value of €78m.
However, the firm also splashed out €85m on acquisitions and investments, the majority of which relate to bolt-on transactions in the Americas Materials Division.
"Results in the Philippines are expected to be ahead of the second half of 2015. Against this backdrop and in the absence of any major financial or energy market dislocations, we expect to continue to make progress on a Group EBITDA basis in H2 2016," the company said.