8-K

CRH PUBLIC LTD CO 8-K Report (Jul 8, 2005)

Filed July 8, 2005For Securities:CRH

Summary

CRH plc, an international building materials group, has released an interim trading update for the half-year ending June 30, 2005. The company anticipates a high teens percentage increase in profit before tax compared to the prior year, driven by strong performance in its Americas operations. While European markets experienced mixed conditions, with some segments affected by adverse weather and subdued demand, others showed positive developments, including price increases and recovery from earlier setbacks. The update highlights robust activity in the Americas, with significant volume and price increases across materials, products, and distribution segments, particularly benefiting from strong residential construction and post-hurricane repair work in Florida. The company also noted continued acquisition activity, with development expenditure focused on both Europe and the Americas. CRH maintains a strong financial position and anticipates further progress in the second half of the year, despite cost challenges related to rising oil prices.

Key Highlights

  • 1CRH expects a high teens percentage increase in profit before tax for the first half of 2005 compared to 2004.
  • 2Americas operations, across materials, products, and distribution, performed strongly, exceeding expectations with increased volumes and prices.
  • 3European operations faced mixed conditions; some areas benefited from recovering seasonal weather and price increases, while others, like the UK Clay Products and Benelux/Germany Concrete Products, saw subdued demand or weather impacts.
  • 4The company made progress in recovering higher input costs, a key focus for profitability.
  • 5Acquisition activity continued, with development expenditure of EUR 231 million, split 35% in Europe and 65% in the Americas.
  • 6CRH's financial position and cash flow remain very strong, with an expected EBITDA/net interest cover of approximately 12 times.
  • 7The outlook for the US construction market remains strong, while European economies are generally subdued.

Frequently Asked Questions

CRH expects its profit before tax for the six months ending June 30, 2005, to show a percentage increase in the high teens compared to the same period in 2004.

The Americas operations are performing strongly and exceeding expectations, significantly contributing to the company's positive results. European operations have shown mixed performance, with some areas recovering and others facing subdued markets.

CRH is experiencing challenges such as adverse weather impacting European operations, subdued market conditions in some European segments, and increasing input costs, particularly the recent sharp increase in the price of crude oil.

CRH continues to pursue acquisition opportunities across all its operations, committing to transactions that create long-term shareholder value. Development expenditure for the first half was EUR 231 million, with a significant portion allocated to the Americas.