CRH lifts guidance as interims rise 25% on improving demand

Building materials supplier CRH raised annual guidance and increased its dividend as interim core earnings rose by a quarter.

Earnings for the six months to June 30 came in at $2bn, up 25% on a better-than-expected 15% increase in sales to $14bn. The dividend rose 4.5% to 23 cents a share.

On a pre-tax basis profit doubled to $1bn. The company said it expected second half profits to be ahead of a record prior year with its Americas materials division expected to benefit from an improving economic backdrop and good underlying demand.

“We are further encouraged by the progress being made in relation to infrastructure funding negotiations in the US,” the company said on Thursday.

“Assuming normal weather patterns for the remainder of the construction season and against a backdrop of input cost inflation, we expect second-half Group EBITDA to be ahead of a record prior year comparative.”

In Ireland, the easing of Covid restrictions in the second quarter led to an uplift in demand and drove sales.

The UK also saw sales surge as construction activity returned after lockdowns.

In the Americas, like for like sales rose 3% year on year, as volumes of aggregates, cement and readymixed concrete improved.

CRH’s European material business also saw strong volume growth compare to a period that was heavily impacted by Covid-19 restrictions, with like for like sales up 17%.

Strong activity in the residential repair, maintenance and improvement market in North America drove growth in the building products section, with like-for-like sales 8% higher.