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CRH Falls After Cutting Guidance on Europe’s Woes: Dublin Mover

Aug. 20 (Bloomberg) -- CRH Plc, the biggest company on the benchmark Irish stock index, fell the most in Dublin in four months after it pared second-half earnings guidance on Europe’s struggling economy.

The shares fell as much 5.8 percent to 15.8 euros, the biggest fall since April 5, after the building materials company said it expects second-half earnings before interest, tax, depreciation and amortization to be in line with last year. In May, the company said it expected the earnings gauge to be ahead of last year’s figure.

“This is a disappointing set of results particularly on the back of reduced guidance,” said David Holohan, an analyst at Merrion Capital in Dublin, who has a sell recommendation on the stock. “CRH continues to be the most expensive name in the heavy side space in Europe, a position we do not view as justified given the group’s lack of growth prospects relative to peers.”

Europe is experiencing a weak recovery so far, the company’s Chief Executive Officer Myles Lee said in an interview on Bloomberg TV’s Countdown show. Pricing in the region remains tough, Lee said, though he was hopeful of an improvement next year.

Some 99,000 shares were traded in Dublin, 9 percent of the three-month daily average. In London, CRH shares fell as much as 5 percent, with trading at 20 percent of three-month daily average Link to Company News:{CRH ID <Equity> CN <GO>}

To contact the editor responsible for this story: Dara Doyle at ddoyle1@bloomberg.net

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