10-KPeriod: FY2014

CRH PUBLIC LTD CO Annual Report, Year Ended Dec 31, 2014

Filed March 12, 2015For Securities:CRH

Summary

CRH plc's 2014 Form 20-F filing highlights a year of solid operational progress and financial recovery, marked by an 11% increase in EBITDA to €1.641 billion and a return to profitability with a net profit of €584 million. The company benefited from favorable weather conditions in Europe early in the year and a strengthening US market in the latter half, driving a 4% increase in like-for-like sales. A key strategic development announced was the binding offer to acquire certain assets from Lafarge and Holcim for €6.5 billion, funded through a combination of existing cash, a €1.6 billion share placing, and new debt facilities. This transformative acquisition, expected to complete mid-2015, is poised to significantly enhance CRH's global scale and market position, making it the third-largest building materials company worldwide upon completion. The company also continued its portfolio reshaping through divestments, demonstrating a commitment to optimizing its business for future growth and improved returns.

Key Highlights

  • 1Achieved an 11% increase in EBITDA to €1.641 billion, driven by improved performance across all divisions and cost efficiencies.
  • 2Reported a net profit of €584 million, a significant turnaround from the prior year's loss, reflecting operational improvements and market recovery.
  • 3Announced a major strategic acquisition of €6.5 billion in assets from Lafarge and Holcim, aimed at expanding global reach and market leadership.
  • 4Successfully raised €1.6 billion through a share placing to partially finance the proposed acquisition.
  • 5Continued portfolio management through €345 million in divestments, alongside €188 million in bolt-on acquisitions to optimize business mix.
  • 6Maintained strong financial discipline, reducing net debt by €0.5 billion to €2.5 billion and ending the year with substantial liquidity of €5.9 billion.
  • 7Recommended a final dividend of 44c per share, maintaining the full-year dividend at 62.5c per share, underscoring commitment to shareholder returns.

Frequently Asked Questions

In 2014, CRH plc showed strong operational progress, with an 11% increase in EBITDA to €1.641 billion and a net profit of €584 million. Like-for-like sales increased by 4%, supported by favorable weather in Europe and market recovery in the US. The company maintained financial discipline, reducing net debt and ending the year with robust liquidity.

CRH focused on dynamic portfolio management, including a multi-year divestment program of non-core assets and strategic bolt-on acquisitions. The most significant strategic development was the announcement of a binding offer to acquire certain assets from Lafarge and Holcim for €6.5 billion, aiming to transform the company's scale and market position.

The proposed €6.5 billion acquisition was planned to be financed through a combination of existing cash resources, proceeds from a €1.6 billion share placing that completed in February 2015, and new debt facilities amounting to €2.9 billion. This financing strategy aimed to maintain CRH's investment-grade credit rating.

For 2015, CRH anticipated further progress, expecting continued economic recovery in the US and a normalizing market environment in Europe, albeit with some regional variations. The company expected market conditions to improve across its main geographies, supported by cost efficiencies and favorable foreign exchange translation effects, with the integration of the acquired Lafarge/Holcim assets being a key focus post-completion.