Business

CRH shrugs off bad weather as revenues and profits rise in third quarter

Irish building material group’s revenue rose 4% to $10.5bn year on year in quarter

Albert Manifold, CRH group chief executive, at the New York Stock Exchange. Photograph: NYSE
Albert Manifold, CRH group chief executive, at the New York Stock Exchange. Photograph: NYSE
Ciara O'Brien
Thu Nov 07 2024 - 08:14

Shares in Irish building materials group CRH rose by just under 2 per cent in New York in early trading on Thursday after the company reported a “robust” performance in the third quarter of the year, shrugging off the impact of bad weather on its business.

The Dublin-headquartered group said revenue rose 4 per cent to $10.5 billion (€9.8 billion) year on year, supported by the contributions from its recent acquisitions. The group has invested $4.6 billion so far this year in mergers and acquisitions, with $1.2 billion divested.

CRH, which has its main stock market listing in New York, said it would pay a quarterly dividend of $0.35 per share, up 5 per cent on the previous year.

Revenues in its Americas materials solutions business rose 4 per cent year on year to $5.3 billion as strong pricing across its lines contributed and acquisitions had an impact. That offset the effect weather disruptions had on other areas. Adjusted earnings before interest, tax, depreciation and amortisation rose 16 per cent to $1.5 billion on improved pricing and operational efficiencies. The company also gained from selling off land assets.

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The Americas building solutions unit saw revenues rise 1 per cent to $1.76 billion, driven by acquisitions. Adjusted ebidta fell 9 per cent to $355 million on bad weather and a period in 2023.

Revenue in the Europe Materials division rose 7 per cent to just under $2.8 billion, with the Adbri acquisition in July 2024 making a marked contribution. That was offset in part by the sale of CRH’s European Lime operations, and activity levels in some markets also declined.

There were challenges for the Europe building solutions unit, which saw total revenues fall 4 per cent year on year to $664 million on subdued demand in new-build residential markets.

CRH has combined its Europe materials solutions and Europe building solutions divisions into a new International Solutions unit, a change that will be reflected in the final quarterly results of the year.

“Our third quarter results represent another strong performance with further growth in sales, profits and margins,” said Albert Manifold, CRH chief executive. “Despite contending with adverse weather in the quarter, our differentiated solutions strategy continues to deliver industry-leading performance, while the strength of our balance sheet combined with our disciplined approach to capital allocation leaves us well positioned to capitalise on the growth and value creation opportunities that lie ahead.

Looking ahead, the company said its outlook was positive, and it expected favourable dynamics in key markets to continue into 2025.

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Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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