CRH sales jump as group reaffirms full-year guidance

Ireland's largest company CRH said sales from continuing operations rose 16 per cent to €15.5 billion in the nine months to the end of September.

In an interim statement released on Thursday the building materials group said third quarter sales were up 14 per cent versus the same period a year earlier, boosted by a positive impact from the group’s Americas business, where sales rose 23 per cent in the July-September period.

During the first nine months of 2015, sales from continuing operations rose 28 per cent in the Americas and by 2 per cent in CRH’s European division.

CRH said third quarter trading benefited from continued positive momentum in the Americas where overall economic recovery is driving construction demand. The backdrop in Europe continues to be mixed but stable, it added.

Earnings before interest, tax, depreciation and amortisation (ebitda) from continuing operations was €1.5 billion, up 34 per cent on the same period a year earlier.

The group reaffirmed earlier guidance that 2015 will be a year of growth. It said assuming normal weather conditions it expected fourth quarter ebitda to be ahead of last year resulting in a full-year 2015 ebida contribution which would be 25 per cent ahead of 2014’s €1.58 billion.

CRH said sales for the third quarter in the Americas were 7 per cent ahead of 2014 with ebitda improving by 30 per cent. For the full year it expects ebitda from continuing operations to be more than 17 per cent ahead of last year in constant currency terms.

Results from the group’s European operations matched the first half with full-year ebitda expected to be marginally ahead of last year’s €664 million.

CRH said integration of the businesses acquired from Lafarge/Holcim earlier this year was progressing well. These businesses are forecast to contribute ebitda of €0.34 billion to the group's full-year results, before taking into account one-off transaction costs and accounting adjustments totalling €0.2 billion.

The company also reported continued progress with its multi-year divestment programme with divestment/disposal proceeds of €0.74 billion accrued during the first nine months of 2015.

CRH said full-year depreciation and amortisation expense will likely be in excess of €900 million, a big jump from last year’s €724 million. Profits on sale of property, plant and equipment are expected to be broadly similar to 2014’s €38 million).

Net debt of €8 billion at the end of September was €4.5 billion higher than at the end of the same nine month period a year earlier due to the group’s significant acquisition spend in 2015.