8-K

CRH PUBLIC LTD CO 8-K Report (Sep 1, 2006)

Filed September 1, 2006For Securities:CRH

Summary

CRH Public Limited Company's (CRH) 8-K filing from September 1, 2006, details robust first-half 2006 financial results, showcasing significant growth across its business segments. The company reported a 27% increase in sales revenue to €8,028 million and a 38% rise in operating profit to €613 million, driven by strong performance in both European and Americas operations. Earnings per share saw a substantial 32% increase to 73.7 euro cents. The results reflect a strategic focus on both organic growth and significant development activity, with acquisitions and investments exceeding €0.8 billion in the first half and nearly €2 billion year-to-date, including the major APAC transaction. The company also demonstrated its commitment to shareholders by increasing the interim dividend by 20%, marking the 23rd consecutive year of dividend increase.

Key Highlights

  • 1CRH reported a 27% increase in sales revenue to €8,028 million for the first six months of 2006 compared to the same period in 2005.
  • 2Operating profit increased by 38% to €613 million, demonstrating strong operational performance.
  • 3Earnings per share (EPS) rose by 32% to 73.7 euro cents, indicating enhanced profitability for shareholders.
  • 4The company declared an interim dividend of 13.50 euro cents per share, a 20% increase year-over-year, continuing its track record of 23 consecutive years of dividend growth.
  • 5Total development activity (acquisitions and investments) in the first half of 2006 exceeded €0.8 billion, with nearly €2 billion invested year-to-date, including the significant APAC transaction.
  • 6Both European and Americas operations showed strong performance, with Americas Materials' operating profit significantly recovering from a loss in the prior year to a profit of €35 million.
  • 7The strengthening US Dollar against the Euro had a modest favourable impact on profit before tax, amounting to €7 million.

Frequently Asked Questions

CRH reported strong financial results for the first half of 2006. Sales revenue increased by 27% to €8,028 million, and operating profit grew by 38% to €613 million. Earnings per share saw a significant increase of 32% to 73.7 euro cents.

The company financed its substantial acquisition activity, which amounted to nearly €2 billion year-to-date, primarily through debt. This included the recently announced €1 billion APAC transaction.

CRH demonstrated its commitment to shareholders by increasing the interim dividend by 20% to 13.50 euro cents per share. This marks the 23rd consecutive year of dividend increase for the company.

The Americas operations showed particularly strong performance, with Americas Materials recovering from a loss in the prior year to a profit of €35 million. Americas Products also saw a substantial 40% increase in operating profit. In Europe, all six business segments reported improved organic operating profit.