CRH shares jump following strong quarterly update

CRH PLC (LON: CRH) have seen their share price jump on Tuesday morning after the firm updated shareholders with strong third quarter figures.

CRH shares jumped 2.37% to 2,977p on Tuesday morning. 26/11/19 10:38BST.

CRH is an international group of diversified building materials businesses which manufacture and supply a wide range of products for the construction industry.

CRH operate and are managed in Ireland, where it has earned accolades such as being the largest Irish company.

The FTSE100 (INDEXFTSE: UKX) listed firm reported a 9% rise in third quarter profit on a like-for-like basis.

The firm alluded this boost to strong demand and pricing which it expects to continue to 2020.

Shares were at a three year high on Tuesday morning, and certainly this update has sparked shareholder excitement.

The building materials supplier by market value said it expects 2019 earnings of 4.15 billion euros, including its European distribution unit which it sold for 1.64 billion euros this year.

The increased earnings growth to the three months ending September 30 was driven by a 12% climb in its Americas materials division, as CRH is the biggest producer of asphalt for highway construction.

Like-for-like earnings at its building products and Europe Materials divisions rose by 3% and 6%, respectively.

In its Western and Eastern European markets it saw volumes growth while construction activity in the United Kingdom continued to decline amid Brexit-related uncertainty.

“We expect the positive underlying momentum in our businesses to continue and we look forward to another year of progress,” Manifold said on a conference call.

The housing market and home building market has had mixed experiences, but certainly shareholders can be pleased with the results published by CRH.

The recovery of the home builders market will certainly please CRH, as firms have given shareholders optimistic updates.

Homeserve plc (LON: HSV) saw their shares rally last week after a bullish interim update.

Additionally, the merger of Galliford Try plc (LON: GFRD) and Bovis Homes Group plc (LON: BVS) should stimulate further business for CRH and shareholders should be satisfied with the quarterly trading update.

Previous articleLondon Uber ban: reactions
Next articleCompass Group shares sink following pessimisitc outlook