Earnings at CRH up 8pc to €2.5bn over nine months
Building materials group CRH has reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of €2.5bn for the nine months to 30 September.
This represents an 8pc improvement on the same period last year, and a 2pc increase on a like-for-like basis, according to a trading update this morning.
Third quarter sales rose 4pc year-on-year to €7.96bn, with EBITDA up 3pc to €1.37bn in the three months.
In the Americas, the company reported continued underlying growth, despite adverse weather conditions in certain markets.
Momentum remained positive in Europe, while demand improved in Asia, the group said.
Full-year EBITDA is expected to be approximately €3.35bn, up from the €3.15bn reported last year.
In the group’s European market EBITDA increased 2pc year-on-year in the nine month period, while in the Americas EBITDA increased 3pc year-on-year.
However in Asia cumulative like-for-like EBITDA for the division was 44pc behind, as pricing improvements were offset by higher fuel and power costs. This trend is expected to continue for the remainder of the year, the group said.
Looking forward CRH said it expects full-year depreciation and amortisation expense (before impairment charges) to be broadly in line with last year’s figure of €1.1bn.
The company expects its full-year profit before tax from continuing operations to be ahead of last year’s reported figure of €1.9bn.
CRH also announced phase three of its share buyback programme.
The programme will commence today, and will end no later than 31 December 2018, during which time the group plans to repurchase ordinary shares for a maximum consideration of €100m.
Last month the group completed the second phase of its share buyback programme, returning a further €350m in cash to shareholders. This brings total cash returned to shareholders under the group’s ongoing €1bn share buyback programme to approximately €700m.
Once phase three has concluded the total cash returned to shareholders will stand at €800m.