CRH earnings rise despite 'chalenging' environment

The FTSE 100 building materials company said that improvement in EBITDA came despite sales slipping 3% for the nine months ended to 30 September to $20.6bn, as its EBITDA margin improved 100 basis points to 16.6%.

It was expecting full year EBITDA to top $4.4bn, coming in ahead of 2019 on a like-for-like basis.

The board reported ongoing strength in the firm’s cash generation, expecting the net debt-to-EBITDA ratio to end the year at 1.4x, although a non-cash impairment of about $0.8bn was expected in the fourth quarter.

It also noted its agreement to divest its Brazil cement business for $0.2bn, subject to the approval of competition authorities, with the transaction expected to close in 2021.

“As we continue to navigate these challenging times, the health and safety of our people remains our number one priority and is a core focus in our business each and every day,” said chief executive officer Albert Manifold.

“Markets continue to be impacted by the global pandemic and while we have seen some lower activity levels,”

Manifold said he was pleased to report further improvement in trading performance, with an advance in both profitability and margins.

“The outlook for the coming months remains uncertain and visibility is limited, however, I am confident that we are well positioned for the challenges and opportunities that lie ahead.”

CRH said it would report its preliminary results for the full year ending 31 December on 4 March.

At 0801 GMT, shares in CRH were up 1.93% at 3,006p.