CRH posts Q3 earnings increase despite "challenging" cost environment
By Scott Kanowsky
Investing.com -- Construction products manufacturer CRH PLC (LON:CRH) reported a climb in third quarter core income, as higher pricing and cost controls helped offset an uptick in energy costs.
In a trading update on Tuesday, the Dublin, Ireland-based firm said earnings before interest, tax, depreciation and amortization rose by 7% during the three months ended on September 30.
Group-wide revenue climbed by 13% during the quarter, thanks in part to elevated prices at CRH's Americas materials division, which outweighed lower customer activity due to unfavorable weather conditions. Demand for utility infrastructure parts and outdoor living solutions also led to a 36% jump in turnover at CRH's building products business.
But top-line growth was hit by weakness at its European operations, with sales at the unit struggling from higher input costs and adverse currency headwinds.
Despite a "challenging cost backdrop," CRH predicted that full-year core earnings would come in at about $5.5 billion, up from its prior annual return of $5.0B.
"The strength of our balance sheet combined with our relentless focus on disciplined capital allocation provides further opportunities to create value for all our stakeholders," said chief executive officer Albert Manifold.
Shares in the FTSE 100-listed company were lower by more than 2% in mid-afternoon trading.
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