Building materials group CRH said today it would streamline some of its European and American businesses under one division and detailed growth targets that boosted its shares by almost 5%.
CRH will combine its Europe Distribution, Europe Lightside and Americas Products businesses into a new global products division from next year.
The company said the move would provide significant opportunities for growth and value creation.
The world's third-largest building group by market capitalisation said the simpler, leaner structures would help it improve its core earnings (EBITDA) margin by 300 basis points by 2021.
CRH, which has grown to a global giant employing over 85,000 people through decades of acquisitions, said it expected to generate financial capacity of €7 billion after capital investment and dividends over the next four years.
"There is no other company in the sector with this level of cash firepower," analysts at Davy Stockbrokers said, saying CRH also set a target last month to raise €1.5-2 billion from the sale of assets.
CRH also today announced a strategic review of its Europe Distribution unit to improve margins and returns and will also explore other strategic options for a business it said had a mixed performance in recent years.
That will likely lead to speculation of a possible sale of the unit that had sales of €4 billion last year, Davy said.
Shares in the company moved higher in Dublin trade today.
