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CRH PLC T.CRH


Primary Symbol: CRH

CRH PLC is a provider of building materials solutions. The Company integrates building materials, products, and services by providing them to customers as complete solutions. Its segments include Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions and Europe Building Solutions. The Americas Materials Solutions segment provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings in North America. The Americas Building Solutions segment manufactures, supplies, and delivers solutions for the built environment in communities across North America. The Europe Materials Solutions segment provides solutions for the construction of public infrastructure and commercial and residential buildings to customers in construction markets in Europe. The Europe Building Solutions segment combines materials, products, and services to produce a range of architectural and infrastructural solutions.


NYSE:CRH - Post by User

Comment by ResearchTimeon May 01, 2017 3:32pm
150 Views
Post# 26188451

RE:RE:RE:re crh year to date

RE:RE:RE:re crh year to datetheinvestor22 is correct that the drop in margins at GAA was due to a single payor losing market share. When they initially acquired GAA this payor made up a large chunk of the reimbursements but over the last couple years this payor has lost market share to other companies. This happens as local business and families switch their healthcare coverage to different companies. As of the end Q1 2017 this payor had lost almost all of their market share therefore going forward the downward pressure on margins at GAA will no longer occur because there isn't reliance on any one payor (according to management on the conference call.)

"And by how much are the others undercutting in price and how long will it be until CRH's insurer has to follow to stay competitive?"

This statement above doesn't really make sense because CRH gets reimbursed by a myriad of insurers. Each city and even each location has a different set of companies who reimburse them. It was just an unusual circumstance where GAA had a high margin payor initially. Margins should now be stable at GAA on a go forward basis because the higher margin declining payor is now at a size of inconsequence. 
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