CRH PLC (LON:CRH) has reported a fall in like-for-like (LFL) sales in its first quarter results and also announced a €1bn share buyback programme.
The FTSE 100-construction company said in a trading update that prolonged winter weather conditions and the timing of the Easter holidays resulted in LFL sales falling 2% compared to the same period last year.
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The group added that underlying earnings (EBITDA) for the first half of the year were expected to be in line with the same period previously on a LFL basis, while earnings for the second half of the year are expected to be ahead of the previous year.
CRH also said it was targeting divestments of between €1.5bn - €2bn over the medium term, following first-quarter divestments of around €2.3bn relating mostly to its American distribution business.
In a separate statement, the company announced a €1bn share buyback programme that is expected to complete over the next 12 months.
Albert Manifold, CRH chief executive, said: "Our strong balance sheet and cash flow generation provides us with this opportunity to return excess cash to shareholders, while at the same time continuing to invest in our business and execute our strategic growth initiatives.
He added: “We remain committed to our progressive dividend policy and our investment grade rating. This repurchase programme demonstrates management's confidence in the outlook for our business, our continued strong cash generation and our flexibility to deliver value to shareholders."