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CRH expects to report ‘record’ earnings of $5.25bn


Albert Manifold

Albert Manifold

Albert Manifold

CRH, Ireland’s biggest company, expects to deliver another “record performance” in 2021, with full-year earnings in excess of $5.25bn (€4.6bn).

The group has reported double-digit earnings growth in the nine months to September 30 amid “good underlying demand” and price increases, which helped off-set the impact of input inflation.

The building materials giant has seen its earnings before interest, taxation, depreciation and amortisation (ebitda) grow 15pc year-on-year to $3.9bn (€3.5bn) in the nine-month period.

On a like-for-like basis, earning increased 11pc on last year.

Sales increased 11pc to $22.8bn (€20bn), according to a trading update from the group. The performance was 7pc ahead of 2020 on a like-for-like basis.

The company’s first-half growth in sales “moderated” in the three months to September 30 this year, as easing pandemic related restrictions in the third quarter of 2020 resulted in a strong prior year comparative, the company said.

“CRH continues to perform well with good underlying demand and pricing progress across our key markets,” Albert Manifold, chief executive of the group, said.

“Our uniquely integrated and solutions-focused business model has supported further margin expansion across our businesses, while our strong cash generation and disciplined approach to capital allocation provides further opportunities to create value for all of our stakeholders.”

“Looking ahead to the remainder of the year, we expect to deliver another record performance for the group, with full-year ebitda in excess of $5.25bn,” he added.

CRH’s ebitda margin improved 50 basis points year-on-year to 17.1pc.

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CRH operates three divisions; Americas Materials, Europe Materials, and Building Products. Third quarter and nine-month ebidta margins were ahead in all divisions.

The company, which employs around 77,000 people across 3,100 operating locations in 29 countries, has spent $1.4bn on acquisitions in 2021 and has a “strong pipeline of opportunities.”

So far this year the group has returned $800m of cash to shareholders through its ongoing share buyback programme.

Looking to next year and the company expects the positive underlying demand and pricing backdrop to continue “albeit against an inflationary input cost environment.”

The group, which is the largest building materials business in North America and Europe, said it is “encouraged by the passing of the $1.2tn infrastructure package by the United States Congress.” This “significantly increases the commitment to future infrastructure investment in the US,” it added.

So far this year shares in CRH are up over 32pc.

The company will report its preliminary results for the full-year 2021 in March next year.