8-K

CRH PUBLIC LTD CO 8-K Report (Aug 28, 2007)

Filed August 28, 2007For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced its interim results for the six months ended June 30, 2007, showcasing robust growth driven by strong performance in Europe, which largely offset more challenging conditions in the Americas. The company reported a 27% increase in profit before tax to €670 million and a 26% rise in earnings per share to 92.8 cents. Significant investments, totaling nearly €1 billion, were made in acquisitions during the period, including strategic moves into China and Turkey, alongside the acquisition of Swiss builders merchant Getaz Romang. The company also declared an interim dividend of 20.0 cents per share, a substantial 48% increase from the previous year, reflecting a strategy to adjust dividend cover and re-establish a traditional split between interim and final dividends. CRH anticipates strong full-year profit growth based on its balanced geographic and sectoral performance.

Key Highlights

  • 1Revenue increased by 21% to €9,698 million for the six months ended June 30, 2007.
  • 2EBITDA grew by 23% to €1,141 million, and operating profit increased by 26% to €771 million.
  • 3Profit before tax rose by 27% to €670 million, with earnings per share up 26% to 92.8 cents.
  • 4Europe demonstrated a particularly strong performance, with operating profit up 50%, driven significantly by organic growth.
  • 5The Americas experienced more challenging conditions, with operating profit in that segment declining slightly, impacted by weaker US dollar and softer demand in distribution.
  • 6CRH invested nearly €1 billion in acquisitions and investments, including its first ventures in China and Turkey.
  • 7The interim dividend was increased by 48% to 20.0 cents per share.

Frequently Asked Questions

The primary driver of CRH's profit growth was a particularly strong performance in its European operations, which significantly outweighed more challenging conditions experienced in the Americas. Europe's operating profit increased by 50%, with a substantial portion attributed to organic growth.

CRH continued its active acquisition strategy, investing nearly €1 billion in the first half of 2007. Notable acquisitions included the Swiss builders merchant Getaz Romang and CRH's first transactions in China and Turkey, indicating a focus on expanding its international footprint.

CRH anticipates strong full-year profit growth. This outlook is supported by the continued positive momentum in Europe, ongoing cost-effectiveness driving organic performance, benefits from recent acquisitions, and a sustained development emphasis.

The weaker US dollar had a negative impact on CRH's results. The report notes that the average US Dollar exchange rate was 7.5% weaker against the euro in the first half of 2007 compared to the same period in 2006, which had a negative impact of €16 million on profit before tax.