CRH flat on further fall in US road building contracts
CRH shares were largely flat amid growing analyst concern over a potential persistent dip in the level of roadbuilding contracts being granted in the US.
The Irish cement and building materials giant said last year that US infrastructure projects - including road and housebuilding - using its products would be a key growth driver for it over the coming years.
CRH's Americas Materials division is the leading supplier of cement, asphalt and ready-mixed concrete and paving to the construction sector in North America. Last year, the division grew sales by 12% to €8.95bn and saw an 18% jump in operating profit to just over €1bn.
Within that division, like-for-like US-only sales increased by 5%, with operating profit increasing by 4%.
However, latest figures from the American Road Transportation Builders Association show that highway contracts awarded declined by 4%, on a year-on-year basis, in April. That was the third straight month of decline.
"There is no doubt that the weak contract awards data is a slight concern," Goodbody Stockbrokers said.
"However, it needs also to be viewed in the context of a strong 2018 of awards; the latter being mirrored in the rhetoric from companies that have strong order books...[However] if the weakness in contract awards persists, it is a potential issue for 2020 and beyond," Goodbody said.
CRH's share price - down nearly 7% over the past 12 months - inched up by just 0.3%.
Last month CRH started a fresh share buyback programme - aimed at returning up to €350m to investors by August.
It shortly followed the completion of a €1bn buyback programme.
