CRH first-half profit rises as construction markets recover

CRH reported a 5% increase in first-half profit as the building materials group benefited from recovering construction markets following a bout of severe winter weather.

Pre-tax profit from continuing operations at the FTSE 100 company rose to €497m (£446m) from €475m in the six months to the end of June as revenue increased 1% to €11.9bn.

Like-for-like earnings rose 1% in Europe and 3% in the Americas but problems in the Philippines sent earnings down 59% in Asia.

The Dublin-based company's business was affected by the severe winter weather that hit Europe in March, causing a virtual shutdown of construction activity in many countries. Some markets had not fully recovered lost volumes by the end of the first half, CRH said.

In the Americas, activity recovered in the second quarter after bad weather earlier in the year and business was supported by the strong economy. In the Philippines, rising fuel and power costs drove profit down.

Chief executive Albert Manifold said: "We have had a good first half despite significant weather disruption in Europe and North America in the first quarter. Construction markets continued to recover and pricing gathered momentum in key European markets while there was solid volume and price growth against a positive economic backdrop in the Americas.”

Manifold said he expected momentum to improve in Europe in the second half and for earnings to be higher than a year ago. Growing construction markets in the US and improvements to infrastructure will help drive further earnings growth in the Americas. Earnings in the Philippines will be similar in the second half to the first half, he said.