CRH sees FY profits of $5.5bn against tough cost environment

crh highway usa construction america — CRH

Building products maker CRH said it expected full-year core earnings to rise slightly to $5.5bn “against a continually challenging cost environment” after posting an increase in interim profits.

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The figure compares with $5bn in 2021. CRH on Thursday said interim profits rose by a fifth to $2.2bn, driven by its North America and Europe markets.

Group sales of $15bn were 14% ahead of the same period last year and 12% ahead on a like-for-like basis. The interim dividend was increased 4% to 24 cents a share.

“Against a challenging inflationary cost backdrop, our Americas Materials Division is expected to be supported by resilient underlying demand as well as commercial and operational excellence initiatives,” CRH said.

“Our Building Products Division is expected to benefit from positive underlying residential RMI and utility infrastructure demand as well as contributions from recent acquisitions. In Europe Materials, we expect the trading environment to remain challenged by inflationary cost pressures, macroeconomic uncertainty and geopolitical tensions.”

The company said resilient demand for infrastructure projects and repair, maintenance and improvement works would bolster its US operations, which make up 75% of group earnings and where it is the biggest producer of asphalt for highway construction.

Reporting by Frank Prenesti at Sharecast.com