CRH Reports 1st Half Profit Rise, Plans to Sell Americas Distribution Unit
August 24 2017 - 03:07AM
Dow Jones News
By Tapan Panchal
LONDON--CRH PLC (CRG.DB) on Thursday reported a 27% jump in
first-half pretax profit, and said that it has decided to sell its
Americas distribution business to Beacon Roofing Supply Inc. (BECN)
for $2.63 billion in cash as part of its portfolio management and
capital reallocation strategy.
The building materials company added that it will use the
proceeds from the divestment to acquire German lime and aggregates
business Fels for around 600 million euros ($706.5 million).
CRH, which manufactures and supplies aggregates, cement and
concrete to the construction industry, recorded pretax profit of
EUR517 million for the six months to the end of June, up from a
EUR407 million pretax profit a year earlier, on a revenue of EUR13
billion and EUR12.69 billion, respectively.
Earnings before interest, taxes, depreciation and amortization
totaled EUR1.18 billion, up from EUR1.12 billion.
"For the second half of the year, despite currency headwinds and
continuing challenging conditions in the Philippines, we expect a
continuation of the first-half momentum experienced in Europe and
Ebitda growth in the Americas, which will result in another year of
progress for the group," said Chief Executive Albert Manifold.
CRH has raised its interim dividend payment by 2% to 19.2 cents
a share.
Write to Tapan Panchal at tapan.panchal@wsj.com
(END) Dow Jones Newswires
August 24, 2017 02:52 ET (06:52 GMT)
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