8-K

CRH PUBLIC LTD CO 8-K Report (Mar 7, 2006)

Filed March 7, 2006For Securities:CRH

Summary

CRH plc reported record sales and profits for the fiscal year 2005, driven by strong underlying organic growth and successful contributions from acquisitions. The company achieved a 13% increase in sales to €14,449 million and a 14% rise in operating profit to €1,392 million. Both European and Americas operations demonstrated robust performance, with significant growth in the Americas Materials and Products segments, while Europe Materials also saw a notable improvement. The company also highlighted its commitment to shareholder returns with an 18.2% increase in its total dividend, marking the 22nd consecutive year of dividend growth. The report underscores CRH's strategic focus on development activities, with approximately €1.45 billion invested in value-enhancing acquisitions and major capital projects throughout the year. This aggressive investment strategy positions the company for continued future performance and growth. Looking ahead to 2006, CRH expressed confidence due to positive business outlooks in both Europe and the US, anticipating benefits from gradual economic pick-ups, ongoing construction recovery, and strategic operational improvements.

Key Highlights

  • 1Achieved record sales of €14,449 million, up 13% from 2004.
  • 2Reported record operating profit of €1,392 million, a 14% increase year-over-year.
  • 3Delivered strong growth in Americas Materials (+22% operating profit) and Americas Products (+23% operating profit).
  • 4Increased total dividend by 18.2% to €0.39 per share, extending its streak of consecutive annual dividend increases to 22 years.
  • 5Invested approximately €1.45 billion in acquisitions and capital projects, demonstrating a strong development strategy.
  • 6Navigated rising energy and input costs effectively through successful price recovery and cost control measures.
  • 7Expressed confidence for 2006 with a positive outlook in key European and US markets.

Frequently Asked Questions

In 2005, CRH plc reported record sales of €14,449 million (up 13%), operating profit of €1,392 million (up 14%), and profit before tax of €1,279 million (up 16%). Earnings per share rose by 14% to 186.7 euro cents.

CRH successfully managed rising energy and input costs, such as bitumen, fuel oil, natural gas, diesel, and gasoline, by implementing strong price recovery strategies and maintaining cost control measures across its operations, particularly in the Americas Materials division.

CRH pursued a dual strategy of strong underlying organic growth and strategic acquisitions. The company invested approximately €1.45 billion in value-enhancing acquisitions and capital projects across all segments, indicating a proactive approach to expanding its business and enhancing future performance.

CRH anticipates a positive outlook for 2006, driven by a gradual pick-up in European economies, continued recovery in US non-residential construction, and strong highway markets underpinned by new legislation. The company expects to benefit from ongoing operational effectiveness and the positive impact of its recent acquisitions and development activities.