The Irish international building materials group,
The group, which will report its interim results for the six months ending 30 June 2015 on 27 August, revealed this in an interim management statement for the period 1 January 2015 to 30 April 2015. Its annual meeting is in Dublin tomorrow (Thursday).
The statement says that looking ahead to the second half of the year, it expect improving consumer sentiment and favourable monetary policy in Europe to support further organic improvement across our main markets.
Highlights include a satisfactory start to 2015, with delivery in line with expectations; sales from continuing operations up 2.5%; continued momentum in the Americas, with sales from continuing operations up 8%; Europe slightly behind a tough prior year comparative and sales from continuing operations down 2%, and divestment proceeds of €0.54 billion in the first four months of 2015 (cumulative proceeds to date about €0.9 billion).
The group says spending on acquisitions and investments during the period amounted to €45 million; its cost reduction programme remains on track to deliver a further €75 million of savings in 2015; EBITDA from continuing operations for the seasonally less significant first half of the year is expected to be close to 10% ahead of last year on a constant currency basis, while the impact of the proposed acquisition by CRH of certain assets from
In February CRH announced the acquisition of selected assets from Lafarge and Holcim for an enterprise value of €6.5 billion.
In its first half outlook, CRH says its businesses have made satisfactory progress in the first four months of the year and, assuming normal weather conditions prevail during May and June, it expects this trend to continue for the remainder of the first half.
“For our continuing operations, we expect first half EBITDA in Europe to be slightly behind the corresponding period of 2014. In the Americas, with the benefit of a positive demand environment, EBITDA is expected to be well ahead of the prior year period. As a result we expect total group EBITDA from continuing operations for the seasonally less significant first half of the year to be close to 10% ahead of last year on a constant currency basis (EBITDA from continuing operations in H1 2014 amounted to €460 million),” says CRH.
“Whilst first half results for this year will exclude EBITDA contributions of €45 million from divested businesses , overall, including the benefit of favourable foreign exchange translation effects, group EBITDA for the first six months of 2015 is expected to be ahead of last year (2014: €505 million).
“Looking ahead to the second half of the year, we expect improving consumer sentiment and favourable monetary policy in Europe to support further organic improvement across our main markets.
“In the United States, we expect housing and non-residential construction to continue to improve in 2015, with infrastructure activity likely to remain broadly stable; with continued improvement in the overall economic environment, we expect further progress in the Americas in the second half of 2015.
“Against this backdrop, with the benefit of further cost savings measures and in the absence of any major financial or energy market dislocations, we expect second half gfroup EBITDA from continuing operations to be ahead of the corresponding period last year (EBITDA from continuing operations in H2 2014 amounted to €1,080 million).
