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Oldcastle Parent Notes U.S. Rebound


Irish building materials group CRH plc, which owns Oldcastle in the United States, said its earnings increased 27 percent to 505 million euros in the first six months of the year.

Operating in 44 states with more than 13 billion tons of permitted aggregates reserves, the company operates quarries, as well as asphalt and ready mixed concrete plants. Oldcastle is the nation’s third largest aggregates producer, according to the U.S. Geological Survey.

In its interim report, the Dublin-based group said its earnings before interest, taxes, depreciation and amortization (EBITDA) in the first-half jumped to 505 million euros from 397 million euros a year earlier, in line with guidance provided in May this year.

The Dublin- and London-listed company attributed the earnings increase to improving sales, driven by better weather conditions in Europe and continuing recovery in the United States.

Its sales revenue increased by 4 percent, up to 8.3 billion euros, according to the interim report. Sales revenue grew 7 percent in Europe and 1 percent in the Americas. Like-for-like sales were up 5 percent. The pre-tax profit amounted to 61 million euros, the report said.

“2014 got off to an encouraging start with favorable weather in Europe and continuing recovery in the U.S.,” said CRH CEO Albert Manifold. “We are pleased with the strong operating leverage which is reflected in margin improvement for the period. Economic indicators continue to be positive in the Americas, while in Europe we have seen some easing of trends in recent months.”

The company also said it may spend as much as $2 billion on acquisitions over the next 18 months.