CRH reported that its third-quarter trading environment benefitted from continued positive momentum in the Americas where overall economic recovery is driving construction demand. The backdrop in Europe continues to be mixed but stable.
Cumulative sales from continuing operations amounted to EUR15.5bn the nine months to the end of September, an increase of 16 per cent compared with the corresponding period in 2014.
EBITDA from continuing operations was EUR1.5bn, an increase of 34 per cent; Europe up three per cent; Americas up 55 per cent.
CRH said the integration of the businesses acquired from Lafarge/Holcim (LH) is progressing well. These businesses, which are performing in line with its expectations, are expected to contribute EBITDA of c.EUR0.34bn to CRH’s 2015 results, before taking into account one-off transaction costs and accounting adjustments totalling EUR0.2bn.
In terms of its multi-year divestment programme, divestment/disposal proceeds of EUR0.74bn were achieved.
Full year outlook
With momentum continuing to be positive in the Americas, CRH reiterated its guidance that 2015 will be a year of growth.
Assuming normal weather conditions for the remainder of the year, it expects 4Q EBITDA from continuing operations to be ahead of 4Q14 which benefited from a strong close to that year. As a result the company expect the full year 2015 EBITDA contribution from continuing operations, which includes the benefit of positive currency translation impacts, to be approximately 25 per cent ahead of 2014 (2014: EUR1.58bn).
Overall EBITDA outturn for the year, with the inclusion of post-acquisition contribution from the LH assets, and after taking into account the impact of divestments and one-off items, is estimated to be c.EUR2.08bn, well ahead (> 25 per cent) of last year (2014: €1.64bn).