Earnings boost as CRH starts to tap Biden's huge infrastructure spend

Chief executive Albert Manifold said CRH was likely heading "for a strong period of growth" on both sides of the Atlantic.

Chief executive Albert Manifold said CRH had delivered 'a robust first-half performance'.

CRH, the Irish-based international building materials giant, posted an outsized increase in earnings at the half-year stage following “strong” price rises and as it starts to tap the huge spending increase on US infrastructure under Joe Biden's White House.  

Earnings climbed 14% to $2.5bn (€2.3bn) in the first six months, as sales rose 8% to €16.1bn, reflecting growth in most operations in the Americas and Europe, despite a sharp decline at its European building division which took hits from a slowdown in housebuilding activity and bad weather. 

However, chief executive Albert Manifold said the company had "delivered a robust first-half performance, with strong pricing offsetting cost inflation" and acquisitions helping boost results. 

CRH was likely heading "for a strong period of growth" on both sides of the Atlantic in the coming years, Mr Manifold said.

Building material companies such as CRH have been in the spotlight as they pass on hefty rises in their costs to customers. 

CRH is also increasingly confident about tapping the plans of Mr Biden to increase spending dramatically on crumbling US infrastructure, including road, rail, seaports, and airports, which will likely more than offset the challenges facing housebuilding following the rapid rise in interest rates. 

Mr Manifold said that bilateral political support meant the US spending programme would likely continue following next year's elections.

"Although residential construction activity is expected to remain subdued across many of our markets in the current interest-rate environment, the underlying fundamentals are attractive and supportive of robust long-term growth," the company predicted.

CRH is switching its main stock market listing to New York from Dublin, reflecting the increasing significance of the US. Its shares have climbed 39% this year, to value the company at almost €37.2bn.