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Construction company supplier CRH has reported its EBITDA and margin are ahead despite lower sales revenue, while pre-tax profit fell, as it warned of 'limited visibility' for the fourth quarter and into 2021.
The company announced first-half sales were 5% behind, with like-for-like sales 3% below the first half of 2019 at $12.2bn, as a positive performance in the first quarter was followed by significant disruption in the second quarter due to Covid-19.
First-half pre-tax profit was $518m, compared with a profit of $717m in the first half of 2019, which CRH said primarily reflected lower profit on divestments compared with the first half of 2019.
EBITDA of $1.59bn in the first half of 2020 was slightly behind the same period in 2019, as CRH said it was impacted by $65m of one-off costs primarily due to COVID-19 related restructuring items.
On a like-for-like basis Group EBITDA was $1.6bn, up 2%, while the like-for-like EBITDA margin increased 70bps.
In Americas materials, like-for-like EBITDA rose 20% in the period, primarily on solid price progression, good cost control and lower energy costs, while Europe materials like-for-like EBITDA was down 28%, reflecting the 'significant impact' of COVID-19 restrictions in the UK.
Its interim dividend is in line with the prior year period.
The company has forecast that overall EBITDA for the third quarter will be in line with the third quarter in 2019.
Chief executive Albert Manifold said: 'The outlook for the rest of the year and into 2021 remains uncertain and is dependent on an improving health situation across our markets.'