Building materials group CRH has reported lower revenues and pre-tax profits for the six months to the end of June after "a robust performance in a challenging environment".
CRH said its half year revenues fell by 3% to $12.2 billion, while its profit before tax from continuing operations came in at $518m compared with a profit of $717m the same time last year.
The company, the world's second-biggest building materials group, also said it had limited visibility for the fourth quarter of the year and into 2021 due to Covid-19.
CRH said the global Covid-19 pandemic had a material impact across the construction markets in which it operates.
It said that first-half sales for the group were 5% behind the first half of 2019.
Like-for-like sales were 3% lower, as a positive performance in the first quarter was followed by significant disruption in the second quarter, the company added.
Albert Manifold, CRH's chief executive, said the company's first-half performance is testament to the hard work and dedication of all its staff during a very challenging and uncertain period.
The CEO said that health and safety is the company's number one priority and its main focus is to provide a safe working environment for all of its employees.
"We took swift and comprehensive action in response to the Covid-19 crisis, and our ability to flex our cost base and deliver improved profitability, margins and cash generation in a rapidly evolving environment demonstrates the strength and resilience of our business," Albert Manifold said.
"The outlook for the rest of the year and into 2021 remains uncertain and is dependent on an improving health situation across our markets," he added.
CRH said the Americas businesses were operating in the region of 90-95% of normalised levels, while activity in Western Europe ranged between 80-90% and was unlikely to return to normalised levels this year.
The company noted that construction in Ireland was severely impacted by government restrictions in response to Covid-19 with volumes in all products behind the same time last year.
"Pricing remained resilient with improvements on prior year and, despite a significant pick-up in demand in June, sales and operating profit for the first half of the year finished behind 2019," it added.
CRH said that due to its "resilient" first-half performance and despite the disruption of Covid-19 across its markets, its board has decided to maintain the interim dividend, now declared in dollars, at 22 cent per share.
It said that sales revenue at its American Materials Division dipped 1% to $4.479 billion, but its operating profits jumped by 53% to $289m as price progression, lower energy costs and strong cost control offset volume challenges.
CRH is the biggest producer of asphalt for highway construction in the US.
The company said the sales fall was mainly driven by Covid-19 restrictions in the second quarter which impacted volumes across all lines of business particularly in its Northern regions of Quebec, New York, Pennsylvania and Washington following a strong first quarter performance.
Revenues at CRH's Europe Materials Division fell by 12% to $4.070 billion while operating profits slumped by 74% to $62m due to the impact of site closures from the middle of March to late May as a result of Covid-19 restrictions in the UK, Ireland, France and the Philippines, in particular.
CRH noted that Germany, Switzerland, the Benelux and most of Eastern Europe were less impacted as construction activity continued and in certain cases was boosted by government projects and increased local demand.
Meanwhile, sales revenue slipped 1% to $3.666 billion at CRH's Building Products division, while operating profits rose by 11% to $413m on the back of solid pricing and improved volumes supported by robust homecentre demand, particularly in North America, along with more favourable early season weather in North America and Europe.
CRH said the positive performance was partly offset by the business disruption as a result of Covid-19, as its European operations were particularly impacted by government restrictions from March to late May along with shutdowns in certain areas of North America.
The company, which embarked on its first share buyback programme in a decade in 2018 and had indicated before the pandemic that the scheme was likely to continue this year, said today it was keeping it paused.
CRH shares were lower in Dublin trade today.
