CRH revenues rise as strong NA growth offsets weakness in Europe
London-listed shares in rose on Friday after the builders' merchant said it made a solid start to 2024 in the seasonally least significant quarter, with revenues rising on the back of positive pricing, early-season activity and favourable weather in key markets.
The company reaffirmed its previous guidance for 2024, saying it expects a "favourable market backdrop and continued positive pricing momentum" during the year.
The Dublin-based firm, which offers building materials across North America, Europe and some parts of Asia Pacific, said revenues over the first three months of the year were up 2% on last year at $6.5bn, rising 1% on an organic basis.
Materials Solutions and Building Solutions revenues were up 16% and 2% in North America respectively; but fell by 8% and 10% in Europe, respectively, held back by bad winter weather.
Group net income rose to $114m compared with a loss of $31m the year before, helped by a gain on the completion of phases one and two of the European Lime divestiture.
Adjusted EBITDA came in at $445m, up 15% year-on-year, "as a result of the continued delivery of our integrated solutions strategy, strong commercial progress, ongoing cost control and further operational efficiencies".
Looking ahead, CRH said it remains well positive for "another year of growth" in 2024. In Europe in particular, the company expects good underlying demand in infrastructure and key non-residential markets, helped by cost control.
UK-listed CRH shares were up 3.5% at 6,670p by 0841 BST.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.