Irish building materials firm CRH has unveiled a fresh buyback to reward investors following a rise in profit at the start of 2024.
CRH has bought back around $600m (£479m) worth of shares so far this year under its previously announced buyback programme.
It announced on Friday that it was commencing an additional $300m (£239m) tranche to be completed by 7 August, adding that it would continue to assess its buyback program for the rest of 2024.
The news came as CRH reported that its gross profit rose to $1.81bn (£1.44bn) in the first three months of 2024, from $1.62bn (£1.29bn) during the same period last year.
Its total revenues of $6.5bn (£5.2bn) were up two per cent year-on-year, while its net income of $114m (£90.9m) compared with a $31m (£24.7m) net loss for the first quarter of 2023.
CRH pinned the improved performance on positive pricing, early-season activity and benign weather across its key markets, as well as gains from acquisitions that offset lower volumes in Europe.
The firm completed eight acquisitions in the first quarter, worth a combined $2.2bn (£1.8bn), mainly consisting of a portfolio of cement and readymixed concrete assets and operations in Texas that it bought for $2.1bn (£1.7bn).
CRH’s European materials and building solutions businesses respectively posted total revenues eight per cent and 10 per cent lower than a year before, dragged down by factors like unfavorable winter weather and weaker demand in new-build residential markets.
Meanwhile, revenue from its Americas materials solutions business jumped 16 per cent. Last year, CRH was one of several big FTSE names to look overseas for better returns, switching its primary stock market listing from London to New York.
The firm’s adjusted earnings before tax (EBITDA) was up 32 per cent to $445m (£355m), helped by lower energy costs and operational efficiencies.
CRH stuck with its existing full-year guidance, expecting “a favorable market backdrop and continued positive pricing momentum”.
Chief executive Albert Manifold said: “We are pleased to report a good first quarter performance in what is the seasonally least significant period for our business. That performance was supported by positive pricing momentum, early-season project activity, favorable weather in certain regions and the contribution from acquisitions.
“We believe the strength of our balance sheet together with our relentless focus on the efficient allocation of our capital enables us to capitalise on the opportunities we see for further growth and value creation in 2024 and beyond.”