8-K

CRH PUBLIC LTD CO 8-K Report (Jan 3, 2008)

Filed January 3, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K report on January 3, 2008, providing a trading update for the full year 2007. The company anticipates a profit before tax close to €1.9 billion, representing a high-teen percentage increase over 2006 and marking the fifteenth consecutive year of profit and earnings growth. This performance was achieved despite an adverse translation impact from currency fluctuations, particularly the weaker US dollar against the Euro. CRH also highlighted a record acquisition spend of approximately €2.2 billion in 2007, with €1.2 billion invested in the second half of the year across Europe and the Americas. The company maintained a strong financial position, with expected EBITDA/net interest cover around 9 times. To further enhance shareholder returns, CRH announced a share repurchase program for up to 5% of its ordinary shares, alongside its ongoing commitment to an active development program and maintaining an investment-grade credit rating.

Key Highlights

  • 1CRH expects full-year 2007 profit before tax to be close to €1.9 billion, a high-teen percentage increase over 2006, achieving 15 consecutive years of profit and earnings growth.
  • 2Record acquisition spend of approximately €2.2 billion in 2007, with €1.2 billion deployed in the second half of the year.
  • 3EBITDA/net interest cover is expected to remain strong at approximately 9 times for 2007.
  • 4CRH will introduce a share repurchase program, limited to a maximum of 5% of its ordinary shares, signaling confidence in its financial position.
  • 5Anticipated 2007 operating profit for European operations is approximately €1.1 billion, a significant increase from €0.814 billion in 2006.
  • 6Expected 2007 operating profit from Americas activities is approximately US$1.35 billion, up from US$1.196 billion in 2006.

Frequently Asked Questions

CRH expects its profit before tax for the full year 2007 to be close to €1.9 billion, which is a high-teen percentage increase compared to the €1.602 billion reported in 2006. This would mark the fifteenth consecutive year of profit and earnings growth for the company.

CRH made a record acquisition spend of approximately €2.2 billion in 2007. This included €1 billion in the first half and €1.2 billion in the second half of the year, with investments across various regions and business segments.

CRH is committed to an active development program while maintaining an investment-grade credit rating. The company is continuing its phased reduction in dividend cover to a targeted 3.5 times for 2008 and has decided to introduce a share repurchase program for up to 5% of its outstanding ordinary shares.

In Europe, CRH anticipates approximately €1.1 billion in operating profit for 2007, driven by strong performance in Materials, Products, and Distribution. In the Americas, the company expects approximately US$1.35 billion in operating profit for 2007, with strong contributions from both Materials and Products, despite challenging conditions in some sectors.