8-K

CRH PUBLIC LTD CO 8-K Report (Mar 7, 2007)

Filed March 7, 2007For Securities:CRH

Summary

CRH Public Limited Company (CRH) reported a strong performance for the fiscal year ended December 31, 2006, driven by significant organic growth and strategic acquisitions. Revenue increased by 30% to €18,737 million, and operating profit rose by 27% to €1,767 million. Earnings per share (EPS) grew by 20% to 224.3 euro cents. The company highlighted its successful integration of a record €2.1 billion in acquisitions, notably the acquisition of APAC, a US aggregates and heavy highway construction company, which significantly expanded its Americas Materials segment. The company also announced a 33% increase in its total dividend to 52.0 euro cents per share, signaling a phased reduction in dividend cover towards a target of 3.5 times by 2008. CRH demonstrated robust cash generation, maintaining a comfortable interest coverage ratio of 9.7 times. Despite headwinds such as higher input costs and a decline in US residential construction, CRH's diversified operations across Europe and the Americas contributed to its overall positive financial results.

Key Highlights

  • 1Reported a 30% increase in revenue to €18,737 million and a 27% increase in operating profit to €1,767 million for FY2006.
  • 2Achieved record organic growth and a significant contribution from a record €2.1 billion in acquisition expenditure.
  • 3Announced a 33% increase in total dividend to 52.0 euro cents per share, with plans to reduce dividend cover.
  • 4Demonstrated strong operational performance in both European and Americas segments, with Americas Materials showing a 45% increase in operating profit.
  • 5Maintained a comfortable EBITDA/net interest cover of 9.7 times.
  • 6Introduced key acquisitions including APAC (US aggregates/construction), Halfen (European metal construction accessories), and MMI (US construction accessories manufacturer).

Frequently Asked Questions

CRH reported a 30% increase in revenue to €18,737 million, a 27% increase in operating profit to €1,767 million, and a 20% increase in earnings per share to 224.3 euro cents for the fiscal year ended December 31, 2006.

CRH made a record acquisition spend of €2.1 billion in 2006. Key acquisitions, such as APAC in the US and Halfen in Europe, significantly boosted revenue and operating profit, particularly in the Americas Materials and Europe Products segments, demonstrating successful integration and expansion.

CRH increased its total dividend by 33% to 52.0 euro cents per share for 2006. This represents the first step in a plan to gradually reduce dividend cover, aiming for a cover of around 3.5 times by the 2008 financial year. The company expects further progress in the year ahead driven by ongoing development and acquisitions.

CRH successfully managed these challenges through a combination of price recovery initiatives, operational efficiencies, and strategic diversification across its geographic segments and product offerings. The company reported success in recovering higher input costs, particularly in its Americas Materials segment, and leveraged its diversified portfolio to offset declines in specific sectors like US residential construction.