8-K

CRH PUBLIC LTD CO 8-K Report (Sep 22, 2003)

Filed September 22, 2003For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed this Form 6-K on September 22, 2003, reporting its financial results for the six months ended June 30, 2003. The report shows a decrease in sales, income before tax, and net income compared to the same period in the prior year. Sales were down 3% to €4,661 million, income before tax decreased by 18% to €161 million, and net income fell 17% to €116 million. This performance was impacted by challenging trading conditions in Mainland Europe and the Americas, partly due to adverse weather and currency fluctuations, particularly the weakening of the US dollar against the euro. Despite the financial headwinds, CRH demonstrated a commitment to shareholder returns by increasing its interim dividend by 10% to 8.20 euro cents per share, marking the 20th consecutive year of dividend increases. The company also continued its strategic acquisition and investment activities, spending €577 million on 20 deals in the first half of the year, and announced significant planned acquisitions in Holland post-period. The outlook suggests a stronger second half driven by seasonal patterns in the US, though currency translation effects are expected to remain a headwind for the full year.

Key Highlights

  • 1For the six months ended June 30, 2003, CRH reported sales of €4,661 million, a 3% decrease from the prior year.
  • 2Income before tax declined by 18% to €161 million, and net income decreased by 17% to €116 million compared to H1 2002.
  • 3Net income per ordinary share (basic) was 22.16 euro cents, down 17% from 26.78 euro cents in H1 2002.
  • 4CRH increased its interim dividend by 10.4% to 8.20 euro cents per share, continuing its streak of consecutive dividend increases.
  • 5The company invested €577 million in 20 deals during the first half of 2003, with further significant acquisition plans announced post-period.
  • 6Adverse currency translation effects, particularly the weakening US dollar against the euro, had a €10 million negative impact on income before tax.
  • 7The Americas region experienced a challenging first half with reduced volumes due to adverse weather, impacting both Materials and Products & Distribution divisions.

Frequently Asked Questions

For the six months ended June 30, 2003, CRH reported sales of €4,661 million (down 3% year-over-year), income before tax of €161 million (down 18%), and net income of €116 million (down 17%). Net income per ordinary share was 22.16 euro cents, a 17% decrease.

Currency translation effects, primarily the weakening of the US dollar against the euro, had a negative impact. This resulted in a €10 million adverse effect at the income before tax level for the first half of 2003. The weaker dollar also adversely affected reported euro results for the Americas operations.

CRH has a strong commitment to shareholder returns. The Board decided to pay an interim dividend of 8.20 euro cents per share, representing a 10.4% increase over the prior year's interim dividend. This marks the 20th consecutive year of dividend increase.

CRH continues to actively pursue growth through acquisitions and investments. In the first half of 2003, the company spent €577 million on 20 deals. Significant post-period announcements include agreements to acquire Cementbouw's distribution and building products operations in Holland for €646 million and to invest €47 million in its materials operations.