CRH (CRH) built a position at the top of the FTSE 100 leader-board this morning as the Dublin-based construction materials group announced the sale of is U.S. distribution business to Beacon Roofing Supply (BECN) and said it agreed to buy a German lime and aggregates business for €600 million ($707.5 million).
CRH rose 3.5% to 2,784 pence ($35.63) in early trading, as it simultaneously issued interim results showing revenue in the first half of 2017 rose 2% year-on-year to €12.99 billion from €12.69 billion, and climbed 1% on a like-for-like basis. It said the results were in line with earlier guidance.
Pretax profit for the first half was 27% higher at €517.0 million, up from €407.0 million the year before.
CRH said its margin improved 20 basis points to 9.0% from 8.8%. Earnings per share of €0.435 were 29% ahead of 2016's €0.338
CRH raised its interim dividend by 2% to 19.2 cents from the 18.8 cent payout last year.
Region by region, like-for-like sales rose 3% in Europe and 1% in the Americas but fell 8% in Asia, CRH said.
But chief executive Albert Manifold was bullish for the second half outlook despite the decline in Asia.
"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," he said.
Explaining the decision to sell the Americas unit, the company said Americas Distribution has historically excuted a growth strategy based on acquisitions and it currently saw an absence of accretive acquisition opportunities.
Americas Distribution reported Ebitda of €150 million on sales of €2.3 billion; profit before tax for the year amounted to €121 million. Gross assets at H1 2017 amounted to €1.2 billion.
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