8-K

CRH PUBLIC LTD CO 8-K Report (Sep 2, 2005)

Filed September 2, 2005For Securities:CRH

Summary

CRH Public Limited Company reported strong first-half 2005 results, driven primarily by robust performance in its Americas operations. Sales increased by 13% to €6,329 million, and operating profit saw a significant 20% rise to €445 million, with profit before tax also up 20% to €383 million. This growth was achieved despite a subdued trading environment and adverse weather impacting some European segments. The company highlighted a substantial improvement in the Americas Materials division, significantly reducing its traditional first-half trading loss. Americas Products also delivered strong profit growth, benefiting from the thriving US construction market. The interim dividend was increased by 17%, marking the 22nd consecutive year of dividend growth, reflecting the company's consistent financial performance and commitment to shareholder returns. CRH anticipates further progress in the second half of the year, leveraging the strength of its American operations, though tempered by rising energy costs.

Key Highlights

  • 1Sales increased by 13% to €6,329 million for the six months ended June 30, 2005.
  • 2Operating profit rose by 20% to €445 million, indicating strong operational performance.
  • 3Profit before tax grew by 20% to €383 million.
  • 4Earnings per share (EPS) increased by 17% to 56.0 euro cents.
  • 5The Americas operations showed substantial growth (68% operating profit increase), significantly outperforming European segments.
  • 6Europe Products saw a 10% decline in operating profit due to subdued trading and severe weather.
  • 7The interim dividend was raised by 17% to 11.25 euro cents per share, continuing a 22-year track record of increases.

Frequently Asked Questions

The primary drivers were the strong organic growth from CRH's Americas operations, which significantly offset weaker performance in some European segments. Incremental contributions from acquisitions made in 2004 and 2005 also played a satisfactory role in the overall results.

The Americas operations demonstrated exceptional strength, with a 68% increase in total operating profit, driven by good volume and price improvements in Materials and strong demand in Products and Distribution. In contrast, Europe's performance was mixed. Europe Materials saw a 2% increase in operating profit, aided by acquisitions, while Europe Products experienced a 10% decline due to subdued trading and weather impacts, particularly in Insulation activities. Europe Distribution showed a modest 2% increase in operating profit.

CRH expects to make further progress in the second half of the year, supported by strong market conditions in its American operations and a focus on cost recovery and operational efficiency. However, the company anticipates that rising energy costs will partially offset these positive trends. The outlook for Europe Products is expected to remain challenging, with full-year profit likely lower than 2004, while Europe Distribution and Americas segments are projected to continue showing positive trends or profit increases.

Yes, CRH announced an interim dividend increase of 17% to 11.25 euro cents per share. This follows a 17% increase in the full-year 2004 dividend and marks the 22nd consecutive year of dividend increases, demonstrating a consistent commitment to returning value to shareholders.