CRH offers look at the early-year environment

CRH reports that first-quarter sales and EBITDA (earnings before interest, tax, depreciation and amortization) were ahead of the prior-year period, attributing its growth to factors such as “resilient underlying demand, good commercial progress and the strong contribution from 2022 acquisitions.”

CRH says first-quarter sales in its Americas Materials Solutions business were 10 percent ahead of the same period of 2022. Robust pricing more than offset the impact of unfavorable weather in certain markets, the company adds.

In the area CRH characterizes as “essential materials,” the company says first-quarter sales were 15 percent ahead in the quarter. Healthy activity levels were experienced in the Northeast and Great Lakes region, CRH adds, as double-digit pricing growth occurred in aggregates and cement.

According to CRH, the price increases more than offset lower activity in the West and South, which weather affected adversely.

“We had a positive start to the year in a seasonally quiet trading period,” says Albert Manifold, chief executive of CRH. “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,” Manifold adds.

In the U.S., CRH expects to find robust demand for infrastructure, good activity in some nonresidential segments and continued pricing progress.

“We anticipate a more challenging backdrop in Europe, driven by continued inflationary pressures and some slowdown in the new-build residential sector,” the company says in a written release. “Overall, assuming normal seasonal weather patterns and absent any major dislocations in the macroeconomic environment, we expect group sales, EBITDA and margin for the first half of the year to be ahead of 2022, reflecting the continuing strength and resilience of our integrated solutions strategy.”