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

Delivering profits : should you buy Royal Mail shares?
Share tips

Delivering profits : should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
19 May 2022
Tech stock crash – dotcom bust 2.0 is upon us
Tech stocks

Tech stock crash – dotcom bust 2.0 is upon us

It’s carnage in the tech sector as the market crashes. But that spells opportunity for canny investors, says Matthew Lynn
19 May 2022
Three things you should learn from Bill Ackman's brilliant Netflix trade
Investment strategy

Three things you should learn from Bill Ackman's brilliant Netflix trade

Hedge fund guru Bill Ackman has lost $400m selling Netflix shares. John Stepek explains why this was a brilliant trade, and outlines three things that…
19 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022