The Irish building supplies compay has identified €60 million euros of fresh savings for 2013 on top of the €125 million already identified.
The company’s first-half earnings were down 24% at €397 million euros, and it said that the historically more profitable second half would now be in line with 2012.
”Although recent economic indicators suggest that the Eurozone may be emerging from recession, overall construction activity remains weak and we expect challenging trading conditions in Europe for the remainder of 2013,” says Myles Lee, chief executive.
“In the United States, economic growth is estimated to have strengthened over recent quarters and we expect second half EBITDA to be ahead of last year. Overall for CRH, we expect EBITDA for the second half of the year to be in line with last year (restated 2012: €1.04 billion). The group continues to focus on cost management, operational excellence, value-adding acquisitions and strong cash generation, and is well-positioned to progress as markets recover.”
CRH broadly splits its revenue between Europe and the United States.
The interim results show that sales revenue was down 3%,m reflecting a 6% reduction on a like-for-like basis, comprising a 7% fall in the four months to April moderating to a 3% decline in May/June.
Earnings before interest, tax, depreciation, amortisation and impairment charges (EBITDA) amounted to €0.4 billion, in line with annual guidance. Excluding pension/CO2 gains, EBITDA was 18% below first half 2012.
CRH says that it had first-half acquisitions/investments of €470 million (cumulative €0.8 billion in last 12 months) and proceeds of €202 million from disposals
