CRH report offers details of the company’s 2020

COVID-19 restrictions, project delays in key states and unfavorable weather played a role in CRH Americas Materials’ business in 2020. Photo: P&Q Staff

CRH released a report on its full-year 2020 results Thursday, noting that 2020 was a challenging year for the company due to significant COVID-19 disruptions in economies and construction markets within North America and Europe.

According to CRH, it delivered overall sales of $27.6 billion – a mark that’s down 2 percent from 2019.

Like-for-like sales in CRH Americas Materials declined by 3 percent compared to 2019, the company says, mainly due to COVID-19 restrictions, project delays in key states and unfavorable weather in the first half of the year.

“Our 2020 performance is testament to the commitment of our people and the strength and resilience of our business model,” says Albert Manifold, chief executive at CRH. “Through the repositioning of our business in recent years and our relentless focus on continuous business improvement, we have delivered record levels of profitability, margins and cash generation. Although the near-term outlook remains uncertain, our unique portfolio of businesses together with the strength of our balance sheet leaves us well positioned to capitalize on the growth opportunities that lie ahead.”

Additionally, CRH says good price progression, focused cost control, lower energy costs and operational efficiencies delivered like-for-like EBITDA (earnings before interest, tax, depreciation and amortization) in CRH Americas Materials that was 10 percent ahead of 2019. Like-for-like EBITDA was 7 percent behind 2019 in CRH Europe Materials, primarily reflecting the impact of COVID-19 restrictions in a number of countries across Western Europe and only partly offset by price progress and cost control, the company adds.

According to CRH, CRH Americas Materials generated EBITDA of $2.4 billion in 2020 – 10 percent ahead of the prior year – and an operating profit of $1.6 billion. The $1.6 billion was 15 percent ahead of the prior year despite lower sales.

On a like-for-like basis, CRH says aggregate volumes within CRH Americas Materials were 2 percent lower in 2020 but margins improved as prices were 4 percent higher compared to 2019.

Also last year, CRH Americas Materials completed seven acquisitions in the U.S. and Canada – including aggregate, asphalt, ready-mixed concrete, paving and construction operations at a total cost of $163 million. CRH expects these acquisitions, in addition to several mineral reserve purchases in the U.S., to continue to support future growth in key CRH Americas Materials markets.