CRH gains on Obama's infrastructure plans

Irish building materials group CRH was one of the best performers on the FTSE 100 on Wednesday afternoon on the back of optimism around US infrastructure after President Barack Obama called for more investment in the industry.

Irish building materials group CRH was one of the best performers on the FTSE 100 on Wednesday afternoon on the back of optimism around US infrastructure after President Barack Obama called for more investment in the industry.

In his State of the Union address last night, Obama unveiled a new 'Fix it First' programme, pledging $50bn to repair damaged bridges, roads and railways.

CRH, with a market capitalisation of nearly £10bn, is highly exposed to the US economy, with just under 50% of its first-half sales coming from the Americas region (which grew by 21% during the period).

As well as supplying products for home repair, maintenance and improvement, the company is also heavily involved in the infrastructure markets, providing aggregates, cement and ready-mix concrete.

Shares had jumped 61p to 1,417p by 15:03, up 4.5% on the day.

Irish industrial production, BlackrockHelping gains on Wednesday was the news that CRH's domestic market of Ireland registered the biggest increase in industrial production in December when compared to the wider Eurozone.

While industrial output rose 0.7% month-on-month across the single-currency region, Irish production increased an impressive 8.5%.

In other news, in a press release at midday, CRH notified the market that asset management giant BlackRock had increased its stake in the firm to over 5.0% in a transaction over a year ago, buying up seven million shares.

CRH, which is due to release its full-year results on February 26th, is expected to report revenue of €18,720m for 2012, down from €20,992m the year before. Pre-tax profit is expected to slump from €1,904m to just €640m.

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021