The key points show third-quarter group like-for-like sales growth of 3%; EBITDA is up 6% during the period; Europe is close to 2013 results for Q3, and the Americas is up 10%.
CRH says strong operational leverage in the businesses underpins improved margins and returns.
The group says that its portfolio analysis is complete, and the refined portfolio criteria provides focus to its future acquisition strategy to establish leading positions in markets that offer the most attractive future returns and growth in the cycle ahead.
With a strong balance sheet and cash generation capability, CRH is “well-positioned to take advantage of value-creating acquisition opportunities.”
Its multi-year €1.5 billion to €2 billion divestment programme is well underway, with proceeds of approximately €0.4 billion expected in 2014. Portfolio management is now embedded as a core component of CRH’s approach to value-creation.
CRH says its guidance is reiterated: 2014 is a year of profit growth.
As expected, Q3 trading saw moderating trends in Europe following the favourable early season weather conditions of H1 and continued positive momentum in the USA where overall economic recovery is driving construction demand.
Cumulative group sales (including acquisitions and divestments) to end September amounted to €14 billion (2013: €13.4 billion), with corresponding EBITDA of €1.2 billion (2013: €1.06 billion).
In its full-year outlook, the group says the trends in EBITDA have been mixed, with Europe leading the performance delivery in the first half and the Americas taking the lead in the second half.
“Assuming normal weather patterns for the remainder of the year, CRH expects Europe EBITDA for the year as a whole to be approximately 10% ahead of last year (2013: €583 million),” says the group.
In an Americas update, CRH says that against the backdrop of improving construction activity in the United States, its Americas operations benefited in the third-quarter from stronger underlying demand following the weather-impacted first half. Like-for-like sales for the quarter were 6% ahead of 2013 and overall EBITDA improved by 10% in US$ terms.
For the full year it expects EBITDA to be approximately 10% ahead of last year (2013: €892 million).
