(Alliance News) - CRH PLC on Wednesday backed its half-year outlook, after it said it experienced quarterly sales growth.
Shares in CRH were down 4.0% to 3,862.00 pence each in London on Wednesday morning.
The Dublin-based building materials company said that reported sales in the first quarter of 2023 were up 7% year-on-year. Reported sales increased in Americas Materials Solutions and Americas Building Solutions by 10% and 22%, respectively. However, in both Europe Materials Solutions and Europe Building Solutions sales fell by 1%.
CRH said the growth was despite a "seasonally quiet period." It added that it was driven by its integrated solutions strategy, resilient underlying demand, good commercial progress and the strong contribution from 2022 acquisitions.
CRH said that it has spent USD200 million on four acquisitions in the year-to-date, the largest of which was the acquisition of Ulricehamns Betong AB in Sweden by Europe Building Solutions, expanding its precast concrete solutions offering.
It added that it is seeking shareholder support to approve its US primary listing together with US equity index inclusion as soon as possible.
The company first announced its plans to move its primary stock listing to the US from London in March.
CRH said it will remain headquartered in Ireland. However, a US primary listing will remove CRH from the FTSE 100 index.
"North America currently represents approximately 75% of group Ebitda and is expected to be a key driver of future growth for CRH. We believe a US primary listing will bring increased commercial, operational and acquisition opportunities for our business, further accelerating our successful integrated solutions strategy and delivering even higher levels of profitability, returns and cash for our shareholders," it explained.
The company will hold its extraordinary general meeting on June 8.
Looking ahead, CRH said that its expects its Americas segment to experience "robust infrastructure demand, good activity in key non-residential segments, continued pricing progress and positive contributions from acquisitions" in the first half of the year.
However, the company expects a more challenging backdrop in Europe driven by continued inflationary pressures and some slowdown in the new-build residential sector.
Overall, CRH expects half-year earnings before interest, tax, depreciation, and amortisation to be ahead of its 2022 results of USD2.2 billion.
Chief Executive Officer Albert Manifold said: "We had a positive start to the year in a seasonally quiet trading period. While some adverse weather conditions were experienced in Q1, sales and Ebitda were ahead, underpinned by the continued execution of our integrated solutions strategy and further commercial progress across our markets. Looking ahead, despite some ongoing macroeconomic uncertainties and an inflationary cost environment, we expect first-half sales, Ebitda and margin to be ahead of the prior year period."
By Sophie Rose, Alliance News reporter
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CRH (CRH)