There’s positive news for FTSE 100 aggregates giant CRH (CRH) if you drill into the latest US highway was contract awards data. CRH is the largest producer of asphalt for road construction in the US. Contrarian investors should take a closer look given the opportunity to buy shares trading close to a two-year low at £13.37.
National contract awards are down 7.9% year-on-year in the nine months to the end of September and bridge construction contract awards are down 6.5%. The lion’s share of the decline in US highway contracts is attributable to a 57.5% fall in Texan contract awards in September.
That’s down to unfavourable comparative figures where September 2013 saw the award of a major contract linked to Transportation Infrastructure Finance and Innovation Act (TIFIA) funding.
If you strip out this anomaly, national highway contracts rose 9.7% ; the fourth consecutive month of year-on-year growth. September’s ex-Texas growth follows gains of 1.2% in June, 0.7% in July and 7.4% in August (all year-on-year).