CRH has today raised its full-year guidance after the largest building materials producer in the US and Europe reported a 12% rise in second quarter core profit.
The Dublin-based group said it expects full-year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between $6.82 billion and $7.02 billion, up from the $6.55 billion to $6.85 billion it forecast in February.
CRH, which makes about 75% of its profit in the US, boosted its profit margin by 270 basis points to 23.4% in the second quarter, helping it to increase its adjusted earnings by 12% despite a 1% fall in revenue.
It said it expects to benefit from non-residential investment and significant infrastructure activity in North America throughout the rest of the year, and good underlying demand for both categories in Europe.
CRH, which makes about 75% of its profits in the US, reported revenues of $9.7 billion for the second quarter of 2024, down 1% on the same time last year, while its revenues for the six months to the end of June were flat at $16.2 billion.
CRH said its board has declared a new quarterly dividend of $0.35 per share, an increase of 5% on the previous year.
The company also said that as part of its ongoing share buyback programme, it repurchased about four million shares in the second quarter for a total consideration of $0.3 billion. This brings the total for the first half of the year to nine million shares repurchased for a total consideration of $0.7 billion.
It said that the latest tranche of the share buyback program was completed yesterday, bringing the year-to-date repurchases to $0.9 billion.
"CRH is pleased to announce that it is commencing an additional $0.3 billion tranche to be completed no later than November 6, 2024. CRH will continue to assess our share buyback programme for the remainder of 2024 with further updates on a quarterly basis," it stated.
In its results statement today, CRH said its operations in North America are expected to benefit from significant infrastructure activity and increased investment in key non-residential segments, while in Europe, it expects good underlying demand in infrastructure and key non-residential markets, further supported by disciplined cost control.
"Residential construction, particularly new-build activity, is expected to remain subdued across our markets in the near term," the company said.
"Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned to deliver another record year in 2024," it added.
Albert Manifold, CRH's chief executive, said the company has reported another period of further profit growth and margin expansion.
"The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation," the CEO said.
"Reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity, we are raising our guidance and remain well positioned to deliver another record year in 2024," he added.
The company left the Dublin stock exchange for a listing on the New York Stock Exchange last September.
