This is a summary of what my brokers (in Ireland) think of the stock after the results.
CRH has reported interim results today broadly in line with our expectations and its IMS in early July. Revenue for H1 declined 8% to ?7,658m (Merrion forecast ?7,637m) and EBITDA declined 20% as previously guided to ?520m. PBT of ?25m, including a ?13m gain on disposal, compares to our forecast of ?12m, a decline of 77% y/y.
Given the company had already provided detailed guidance, the outlook statement is more important from today?s release. The company states that since its July IMS, the performance of the US Materials business has been disappointing with volumes and price weaker than expected. The company attributes this weakness to lower levels of commercial construction and a reduction in state and municipally funded projects. This leads the company to now expect that US$ profits for US Materials will decline yoy in H2 versus its previous expectation of an increase. The commentary around Europe is slightly more positive than the July IMS. In group terms, the company had previously expected an increase in H2 EBITDA versus 2009 (this guidance was reiterated in July). Six weeks later, CRH is now expecting FY EBITDA to decline 10% yoy compared to 2009 EBITDA of ?1,803m. Our forecast for 2010 EBITDA is ?1,883m increasing to ?2,150.5m in FY11.
We will await today?s presentation to decide on our updated forecasts but we expect to cut numbers quite severely.
We have a BUY on CRH.
They have had a buy on this stock for the last couple of years - so in that respect they have not changed.