CRH cutting costs after 'positive' first quarter

CRH reported a “positive” start to the year on Wednesday, with first quarter like-for-like sales ahead 3%, but added that the impact of the Covid-19 coronavirus pandemic had been visible since mid-March.

The FTSE 100 building materials company said the health and safety of its people remained its first priority, adding that it was focussed on protecting its people, resources, businesses and market positions.

It said the 2020 outlook was now uncertain, and could not be reasonably estimated at present.

A series of “comprehensive” mitigating actions were being implemented across the group, including the suspension of all non-essential and discretionary expenditure.

CRH was also restricting capital expenditure to essential maintenance levels, and was reducing its working capital in line with lower activity levels.

“Significant” cost and restructuring actions were also being taken, along with temporary lay-offs and furlough arrangements in affected areas, and 25% salary reductions for all leadership teams and board members.

The company said it was in a “strong” financial position, with more than $6bn of cash and cash equivalents.

It also said it saw positive long-term prospects, and added it would still propose its 63 euro cent final dividend for shareholder approval at the annual general meeting on Thursday.

“We have had a good start to the year, and although the global spread of Covid-19 brings challenges for us all, I have no doubt that with the financial strength of CRH and the experience of our leadership teams, we will endure through these unprecedented and uncertain times,” said chief executive officer Albert Manifold.

“All necessary actions are being taken to protect our employees and businesses, and to ensure that we are well positioned for the recovery in our markets.”

At 0811 BST, shares in CRH were up 4.56% at 2,246p.