CRH Reports 1st Half Profit Rise, Plans to Sell Americas Distribution Unit
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.
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(END) Dow Jones Newswires
August 24, 2017 02:52 ET (06:52 GMT)