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CRH expects the US market for low carbon cement alternatives to double by 2050

The head of the U.S.'s largest building materials manufacturer, CRH, said that the market for supplementary cementeditious materials, a low carbon alternative to cement, will double by 2050.

CRH's CEO Jim Mintern said this after the industrial giant announced a better-than-expected 9% increase in its second quarter core profits and forecasted full-year earnings between $7.5 billion and $7.7billion, compared to a previous range of $7.3billion to $7.7billion.

Last month, the Irish-based U.S. listed firm agreed to purchase U.S. SCM Supplier Eco Material Technologies for $2.1 Billion to meet the growing demand for alternative ash-based materials.

Mintern stated that "we were attracted to the deal" because we believe that the SCM industry in the U.S. will double by 2050.

This deal places us at the top of the list in terms size and leadership in America (and) provides us with a good growth platform."

He added that the acquisition would increase CRH's ability to serve the US SCM market, which has a capacity of 135 million metric tons. CRH is North America's third largest cement producer.

CRH's adjusted second quarter earnings before interest tax, depreciation, and amortization (EBITDA), of $2.5 billion, were higher than the $2.4 billion average expected by seven analysts polled in LSEG SmartEstimate.

Mintern stated that the higher end of the full-year guidance range is based on the trading in July, a seasonally important month, and an increase year-over-year in volume and margins for contracted work across the major U.S. products lines. (Reporting and editing by Chris Reese; Padraic Hlpin)

(source: Reuters)