CRH sales up 13%, agrees to buy US glazer

Building materials group CRH posted a 3% lift in first half pre-tax profits to €63m from €61m, off reported sales up 13% to €9.4bn.

While European sales were down by 1%, the company posted a 26% rise in sales from the Americas.

CRH said European trading conditions “reflected a mixed macro-economic backdrop” and the outlook for the remainder of the year was a continuation of those trends.

The Irish company said second half earnings in Europe would be broadly in line with last year when European earnings were €0.4bn.

Positive construction markets in the Americas were expected to continue in into the second half of the year, CRH said, and the second half was likely to be ahead of the €0.7bn it posted in same period in 2014 on a constant currency basis.

Dividend per share was maintained at 18.5c, to be paid on 6 November to shareholders registered on 11 September 2015.

Chief executive Albert Manifold said the company had made good progress towards achieving its goal of restoring margins.

"We are on track to deliver another year of growth in 2015. Trading in the Americas has been good and, against a mixed macro-economic backdrop, underlying trading in Europe is broadly in line,” Manifold said.

The company said it would buy US headquartered firm C.R Laurence Co for $1.3bn.

CRH said it would fund the purchase from its existing balance sheet, and $86m would be would deferred over five years.

The Los Angeles based glazer had gross assets of $290m at the end of 2014, and employed more than 1,600 people at 42 locations.

CRH said its investment and acquisition activity in the first half of 2015 was reduced to €113m from €130m, over ten transactions.