CRH earnings rise amid 'resilient' demand; US listing planned
Building materials group CRH posted a jump in full-year earnings on Thursday as sales grew, underpinned by the company’s integrated solutions strategy and good demand, and said it was planning to recommend a transition to a US primary listing this year.
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Earnings before interest, tax, depreciation and amortisation rose 13% to $5.6bn, with sales up 12% to $32.7bn. Earnings per share were ahead 14% at $3.50.
CRH hailed "resilient" demand and commercial progress in North America and Europe. It said that EBITDA growth was achieved as "good commercial management and further operational efficiencies offset significant cost inflation".
CRH lifted its total dividend for the year by 5% to $1.27.
Chief executive Albert Manifold said: "Despite significant cost pressures throughout the year, we delivered further improvements in profits, margins and returns. Our strong cash generation together with our relentless focus on disciplined capital allocation has also delivered the strongest balance sheet in our history, providing us with significant opportunities for further growth and value creation going forward."
The company also announced plans to recommend transitioning to a US primary listing in 2023.
"We have now come to the conclusion that a US primary listing would bring increased commercial, operational and acquisition opportunities for CRH, further accelerating our successful integrated solutions strategy and delivering even higher levels of profitability, returns and cash for our shareholders," it said.
"In the coming weeks we will outline to our shareholders why we are recommending that it is in the best interests of our business and our shareholders to pursue a primary listing of CRH, together with US equity index inclusion as soon as possible."
At 0945 GMT, shares were up 11% at 4,381p.
Russ Mould, investment director at AJ Bell, said "there is logic" to CRH moving to a US lsiting.
"A large chunk of CRH’s earnings come from the US, so that’s where it spends a lot of time both operationally and talking to investors," he said. "There is also the fact that it could get a higher valuation by trading on the US stock market which could come in handy if it wants to issue shares for acquisition deals. Plumbing group Ferguson did exactly the same thing."