CRH continues with dividend despite profit dips

Results were better than expected for the building materials company as disruption in business caused by coronavirus saw falling sales and profits

Article updated: 20 August 2020 2:00pm Author: Ian Forrest

  • The performance was described as “robust” with sales down by 3% and a 70 basis points rise in margins to 13%
  • Adjusted earnings were lower at $1.59 bn and the group highlighted strong cash generation, which has helped reduce debt and enabled the group to announce an unchanged dividend of 22 cents
  • Recommendation: A medium risk ‘Buy’, but given the current uncertainty we would only suggest drip feeding

On a quieter morning for corporate news, buildings material group CRH interim results look to have beaten estimates despite remaining cautious in their outlook. The share price, which has recovered back to pre-crisis levels on hopes that governments around the world will push for more infrastructure spend, was marked higher at the open.

The performance was described as “robust” with sales down by 3% and a 70 basis points rise in margins to 13%. Adjusted earnings were lower at $1.59 billion. The group highlighted strong cash generation which has helped reduce debt and enabled the group to announce an unchanged dividend of 22 cents.

The coronavirus will continue to cloud future forecasts with management expecting sales to be slightly lower over the third quarter. The focus will remain on improving profitability, margins and cash.

Investors in the group will be hoping that countries, especially in the important North America region, will look to build as one way of kick starting the economy as we negotiate a way out of the crisis.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Ian Forrest

Investment Research Analyst

Ian’s background in investments, financial journalism and research has seen him advising private investors on equities and helping to manage portfolios. His qualifications include the Certificate in Financial Planning and the Chartered Institute for Securities & Investment’s Investment Advice Diploma.

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