What was the main reason for the significant impairment charge in 2013?

The primary reason for the €755 million non-cash impairment charge was the comprehensive portfolio review initiated by the Board. This review identified 45 business units that were deemed unlikely to meet CRH's future returns objectives, leading to their classification as candidates for divestment. The impairments also included charges related to equity accounted investments.

How did CRH's performance vary between its European and Americas operations?

CRH's Americas operations showed resilience, benefiting from improving economic activity and a recovery in residential construction, leading to increased like-for-like sales and improved EBITDA margins. In contrast, European operations faced more challenging market conditions, including the impact of severe winter weather in the first half of the year, which led to subdued trading and margin erosion despite cost-saving measures.

What is CRH's outlook for 2014?

CRH anticipates profit growth in 2014, believing that 2013 represented the trough in its profits. The company expects continued progress in the Americas, with similar GDP growth to 2013 and further advances in residential and non-residential construction. In Europe, while conditions remain subdued in some markets, improvements are expected in others, and the company aims to rebuild returns and margins through portfolio optimization, cost control, and capital discipline.

How did CRH manage its debt and liquidity position?

CRH maintained a strong financial position, with net debt remaining broadly in line with the prior year. This was achieved through strong cash generation from operations and proceeds from divestments. The company also accessed capital markets effectively, completing two eurobond issues totaling €1.5 billion at record low coupons, which enhanced its financial flexibility. Undrawn committed facilities of €1.95 billion provided further liquidity.

CRH 10-K FY2013 Annual Report — Revenue, Net Income, EPS

Summary

CRH plc's 2013 annual report highlights a challenging year marked by significant non-cash impairment charges totaling €755 million, primarily due to a comprehensive portfolio review identifying 45 business units for divestment. This review aims to re-align CRH for future growth and improve returns, with 2013 representing what management believes to be the profit trough, expecting profit growth in 2014. Despite these challenges, the company maintained its full-year dividend at 62.5c per share, supported by increased operating cash flow. The company reported sales of €18 billion, with EBITDA (as defined) of €1.48 billion. Significant leadership changes occurred with Myles Lee retiring as Chief Executive after 32 years of service, succeeded by Albert Manifold. Geographically, the Americas business showed resilience with improving trends, particularly in residential construction, while Europe faced more subdued market conditions and weather impacts. CRH continued its active development strategy, completing 28 transactions totaling €0.7 billion, focusing on strengthening its positions in high-growth markets and expanding its distribution network. The company maintained a strong financial position with net debt remaining in line with the previous year, supported by strong cash generation and access to €1.5 billion in eurobond financing at record low coupons.

Key Highlights

1Significant non-cash impairment charges of €755 million were recorded, primarily due to a portfolio review aimed at optimizing business units for future returns.

2Full-year dividend maintained at 62.5c per share, supported by increased operating cash flow.

3Sales for the year were €18 billion, with EBITDA (as defined) reaching €1.48 billion.

4Myles Lee retired as Chief Executive after 32 years, with Albert Manifold succeeding him.

5Active development strategy continued with 28 transactions totaling €0.7 billion, focusing on high-growth markets and distribution expansion.

6Strong financial position maintained with net debt in line with the previous year, supported by robust cash generation.

7Successful eurobond issuances raised €1.5 billion at record low coupons, enhancing financial flexibility.

CRH PUBLIC LTD CO Annual Report, Year Ended Dec 31, 2013

Summary

Key Highlights

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