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CRH sells its Americas distribution business for €2.2 billion

CRH Chief Executive Albert Manifold said the company had 'a satisfactory start to 2017'
CRH Chief Executive Albert Manifold said the company had 'a satisfactory start to 2017'

Global building materials group CRH has reported sales of €13 billion for the first half of the year, representing a 2% rise on the same time last year - while the company has also sold its Americas distribution business.

Sales in the Americas market were ahead by 1% on last year, European sales were 3% higher, while Asia saw an 8% decline.

EBIDTA earnings were up 5% on the same period last year at €1.175 billion.

Shares in CRH soared to a nine-year high following the election of Donald Trump on the anticipation of a massive infrastructure investment programme in the US, however, the shares have fallen of late and have been trading around the €30 mark.

CRH Chief Executive Albert Manifold said the company had "a satisfactory start to 2017 with stabilising trends in key European markets and EBITDA growth in the Americas".

He added that in line with "our progressive dividend policy" the board has "decided to increase the interim dividend by 2.1% to 19.2c per share.

"For the second half of the year, despite currency headwinds and continuing challenging conditions in the Philippines, we expect a continuation of the first half momentum experienced in Europe and EBITDA growth in the Americas, which will result in another year of progress for the Group."

The company also announced two significant deals alongside is results today.

In the Americas, CRH has reached agreement to sell its Americas Distribution business to Beacon Roofing Supply for $2.63 billion (€2.2 billion).

In addition, CRH's Europe Heavyside business has agreed to acquire Fels, a leading German lime and aggregates business, for €600m.

CRH shares are nearly 4% higher in Dublin trade today.