CRH cuts costs, eyes future stimulus measures

DUBLIN, April 21 (Reuters) - CRH announced a range of cost cuts and the suspension of its share buyback programme on Wednesday but the world's second-biggest building materials supplier expects to benefit from post-coronavirus economic stimulus measures.

Subject to shareholder approval, the Irish building group will also press ahead with a 15% hike to its full year dividend for 2019 announced just before the coronavirus began to spread rapidly around the globe, marking almost 50 years of continuous dividend payments.

Unable to "reasonably estimate" the impact the disruption would have on its outlook for 2020, CRH has suspended all non-essential and discretionary spending, including the reduction of capital expenditure to essential maintenance.

Temporary lay-offs and furlough arrangements had also been implemented in affected areas, while the leadership team and all board members had taken a 25% salary reduction.

However CRH highlighted its strong financial position with over $6 billion cash and cash equivalents at hand, and reported that its sales rose 3% year-on-year in the first quarter.

"We have seen strong efforts from governments and central banks around the world to mitigate the economic effects of the current crisis, and the construction industry is expected to be among the key beneficiaries of any future stimulus measures," CRH said in a statement.

(Reporting by Padraic Halpin Editing by Keith Weir)