CRH PLC on Friday reported an improved first quarter, and said it will launch a $300 million share buyback programme.
CRH shares rose 4.0% to 6,702.00 pence each in London on Friday morning.
The Dublin-based building materials company said it had a ‘solid’ first-quarter, though it labels the first three months of the year its ‘seasonally least significant quarter’.
Revenue climbed 1.6% on-year to $6.53 billion from $6.43 billion. CRH swung to a first-quarter net profit of $114 million from a loss of $31 million a year prior.
CRH said its first-quarter was boosted by ‘positive pricing, early-season activity & benign weather in key markets’.
‘We are pleased to report a good first-quarter performance in what is the seasonally least significant period for our business. That performance was supported by positive pricing momentum, early-season project activity, favourable weather in certain regions and the contribution from acquisitions. We believe the strength of our balance sheet together with our relentless focus on the efficient allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation in 2024 and beyond,’ Chief Executive Albert Manifold said.
‘Given this backdrop, we are pleased to reaffirm our previous guidance for 2024.’
CRH still expects 2024 net income between $3.55 billion and $3.80 billion. Net income was $3.1 billion in 2023, down from $3.9 billion in 2022.
CRH added: ‘Our operations in North America are expected to benefit from significant infrastructure activity in our markets and increased investment in key non-residential segments, while in Europe, we expect 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. Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned for another year of growth in 2024.’
The company also announced a new $300 million share buyback. The programme kicks off on Friday, and will end no later than August 7.
The maximum number of shares that can be repurchased is 60.0 million, it said.
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