CRH report satisfactory start to 2017
Dublin-based international building materials group issues first-quarter trading update
CRH plc, the international building materials group, have issued a trading update for the period 1 January 2017 to 31 March 2017, in advance of their annual general meeting, which takes place tomorrow (27 April), in Dublin.
With the benefit of very mild weather conditions across all its major markets, the Group reports a satisfactory start to 2017, with first-quarter sales up 4%, compared with a strong first quarter of 2016.
Group EBITDA for the seasonally less significant first half of the year (H1) is expected to be ahead of last year (H1 2016: €1.12 billion), and based on current momentum, further progress in the second half of the year (H2) is anticipated (H2 2016 EBITDA: €2.01 billion).
Like-for-like, Group sales for the first quarter of 2017 increased by 3% compared with the same period last year.
In the Americas, despite less-favourable weather conditions and very challenging prior-year comparatives, CRH say the economic and business environment remained positive and, excluding the favourable impact of the strong US dollar exchange rate this year, like-for-like sales were in line with 2016.
In Europe, like-for-like sales growth of 6% was supported by stabilizing trends in certain key markets and by the timing of Easter holidays, which occurred in the first quarter of 2016.
Activity in the Philippines had a slow start to the year with like-for-like sales 12% behind the first quarter of 2016, due to the impact of poor weather and competitive market conditions.
On the outlook for the first half of 2017, CRH say that with the benefit of a positive demand environment, EBITDA in the Americas is expected to be ahead of last year (H1 2016: €563 million), while first-half EBITDA in Europe is expected to be broadly in line with last year (H1 2016: €499 million).
Although first-half EBITDA for Asia is expected to be behind, due to competitive pricing conditions in the Philippines (H1 2016: €58 million), overall CRH expect total Group EBITDA for the first half of 2017 to be ahead of last year (H1 2016: €1.12 billion).
Looking ahead to the second half of the year, the Group expects some modest improvement across its main markets in Europe, while in the US, residential construction, which has still not returned to long-term average levels, is expected to advance and non-residential activity is also expected to improve.
In addition, the Group anticipates that the funding stability provided by the FAST Act will lead to a more positive trend for US infrastructure volumes, resulting in EBITDA improvements in the Americas in the second half of the year.
In Asia, CRH say they expect challenging market conditions in the Philippines to continue in the second half.
The Group will report its interim results for the six months ending 30 June on 24 August 2017.
