CRH targets record earnings in excess of €3bn

A strong half-year showing thanks to booming Americas business

Building materials behemoth CRH has revealed that its operating profits interim earnings before interest, tax, depreciation and amortisation more than doubled to €1.12 billion in the first half of 2016.

Strong interim results from Ireland’s largest publicly-quoted company were just ahead of its recently-increased guidance, and have spurred the company on to achieve record earnings for the year overall.

CRH is now aiming to end 2016 with EBITDA in excess of €3 billion.

Group sales for the six months jumped 35% to €12.7bn, and operating margins have risen across each of its seven global divisions.

The Dublin-based firm saw a 39% jump in EBITDA profit was up 39% in the Americas, 7% in Asia and 5% in Europe, on a pro-forma basis.

CRH has stated that if weather conditions remain normal for the rest of the year and on the back of modest early-stage economic recovery in Europe” further progress will be made in the second half targeting full year earnings in excess of €3bn

Following investment of approximately €6.5bn on acquisitions last year, CRH has said that it is now on target to bring its debt to equity levels back to normalised levels by the end of 2016 and on that basis is increasing the interim dividend by 1.6%.

CEO Albert Manifold said:

"With continued positive momentum in the Americas and the modest impact of early-stage economic recovery in Europe, and assuming normal weather conditions for the remainder of the season, we expect further progress in the second half with full year reported EBITDA in excess of €3 billion."

Shares in the company have risen considerably this month, amid speculation that it will soon be rejoining the influential Euro Stoxx 50.