Building materials group CRH has said its first-half earnings likely grew 10% ahead of its previous guidance, an improvement analysts attributed to strong trading in its main market the US.
Shares in the world's third-biggest supplier of cement and other construction products rose almost 3% to a nine-year high today.
The gains came after it said it expected core earnings or EBITDA of around €1.1 billion for the six months to the end of June. In April, the company had indicated a figure of close to €1 billion.
In today's brief statement, CRH did not say what drove the upgrade but analysts said the US momentum CRH reported in the first three months of the year had likely continued.
Sales in the US, where CRH is the top producer of asphalt and which accounted for more than 60% of earnings last year, were up 22% year-on-year from January to March compared with flat like-for-like sales in Europe.
"While the pace of the growth has likely moderated in the US, we suspect the margin environment has continued to be very supportive," analysts at Davy Stockbrokers wrote in a note.
"US end-markets continue to be strong; Europe is close to the lows; and the group is benefiting from long-run efforts to trim costs and improve the business," the Davy analysts added.
Given CRH reports around 75% of its earnings in the second half of the year, Robert Eason of Goodbody Stockbrokers said today's upgrade did not significantly change the company's prospects, but was nevertheless a welcome update amid uncertain equity markets.
Shares in the company were higher in Dublin trade today.
CRH is due to report half yearly results on August 25.
