Building materials group CRH said it expects 2020 core earnings to rise on a like-by-like basis as it provided full-year guidance for the first time with just five weeks left of the Covid-19 pandemic-hit year.
CRH said its sales fell by 3% year-on-year in the third quarter and were 3% lower in the year to September.
But cost cuts and other mitigating actions to minimise the financial impact of the pandemic pushed earnings 2% higher year to date.
The world's second-biggest building materials supplier said it expects full-year core earnings to be in excess of $4.4 billion for 2020, ahead of 2019 on a like-for-like basis, which excludes the impact of currency exchange, acquisitions, divestments and non-recurring items.
CRH reported record earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €4.2 billion last year, before switching the currency it presents its financial results in to dollars.
Rival LafargeHolcim said the Covid-19 recovery was well under way last month when it upped its full-year guidance, while HeidelbergCement, the world's second biggest cement maker, forecast higher full-year earnings.
In a trading update, CRH said earnings were up 3% in the third quarter, having forecast in August that they would be in line with the prior year.
The fall in sales was driven by a 7% third quarter fall in its Americas materials division, where CRH is the biggest producer of asphalt for highway construction. Europe materials revenues fell 2% last quarter, with buildings products up 4%.
CRH noted that third quarter trading in its Building Products Division was ahead, boosted by strong residential repair, maintenance & improvement (RMI) demand in North America.
It said that while activity began to recover in Europe Materials in the third quarter, year-to-date sales remained behind last year.
In its Americas Materials division, its third quarter sales performance was impacted by unfavourable weather conditions and a strong prior year comparative.
CRH said it has spent about $181m on 14 acquisitions so far this year, while on the divestment front, it has completed seven transactions and realised total business and asset disposal proceeds of about $263m.
It said the deal to sell its Brazil cement business for $0.2 billion is currently subject to competition authority review and the transaction is expected to close in 2021.
CRH chief executive Albert Manifold said that the company's markets continue to be impacted by the global pandemic.
"While we have seen some lower activity levels, I am pleased to report further improvement in trading performance, with an advance in both profitability and margins," Mr Manifold said.
"The outlook for the coming months remains uncertain and visibility is limited, however, I am confident that we are well positioned for the challenges and opportunities that lie ahead," he added.
Shares in the company moved higher in Dublin trade today.
