Monday 14 October 2019

The Punt: CRH progress is set in stone

Interesting to see the accounts for CRH America being filed by the aggregates giant yesterday.

The accounts, for 2012, cover just a small portion of CRH's total business (it has global annual revenues of about €18bn), but shed some further light on its activities there.

CRH America's activities include the operations of precast building products and concrete accessories (all the rage this season), as well as the treasury and financing activities of Oldcastle, CRH's main US subsidiary.

The accounts note that about 16pc of CRH America's $746.7m in revenue last year was derived from fixed-price contracts that manufacture and erect precast and pre-stressed components used in construction.

Total revenue at the CRH America unit was up from $621.7m in 2011. Operating income jumped to $40.1m last year from $11.4m a year earlier.

At the end of 2011, it had non-compete agreements defined as intangible assets with a value of $5.1m – a figure that had been amortised during 2012 to just $379,000.

In January this year, CRH America paid just over $9m to buy Modern Concrete, a precast concrete manufacturer based in Pennsylvania.

Modern Concrete was in financial distress, having spent over $20m in 2006 to open a new facility.

As the economy deteriorated, so did its business. An auction process was run by a financial adviser and Modern Concrete was acquired by the Irish firm.

The CRH America accounts also confirm an acquisition in March of a Canadian firm, Edmonton, Alberta-based Expocrete.

Irish Independent

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