CRH plc, which is headquartered in Dublin, Ireland and is the second-biggest building materials supplier in the world, and the market leader in the United States, today said in a trading update in advance of its Annual General Meeting later Wednesday morning, that it expects earnings in the half year to be similar to 2011.
CRH said operations in the Americas have benefited from favourable early weather conditions and a firmer tone in construction markets in the United States. In contrast, trading in our European operations in the first four months has been affected by severe weather conditions in February and by the ongoing impact on sentiment of volatility in Eurozone financial markets. Overall, cumulative like-for-like group sales to end-April were +2% ahead of 2011, although EBITDA (earnings before interest, taxes, depreciation, and amortization) for the period lagged 2011 due to the tough start in our European operations.
Against this backdrop, and given normal seasonal May/June weather patterns in the United States, CRH expects overall EBITDA in the less significant first half of the year to be close to last year’s level (2011: €574m).
"With incrementally more positive US economic and construction prospects for 2012 mitigating a more cautious view on the outlook in Europe, we continue, subject to no major financial or energy market dislocations, to expect overall like-for-like sales growth in 2012 and a year of progress for CRH," the statement said.
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