8-K

CRH PUBLIC LTD CO 8-K Report (Mar 4, 2008)

Filed March 4, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed an 8-K report detailing a recent transaction in its own shares. On March 3, 2008, the company, through its agent Davy, repurchased 276,000 ordinary shares at prices ranging from EUR23.74 to EUR24.202. These shares will be held as treasury shares, which is a common practice for companies to manage their capital structure and potentially boost earnings per share. Following this buyback, CRH now holds 6,333,999 ordinary shares in treasury, with the total number of outstanding shares (excluding treasury shares) standing at 540,893,195. This repurchase activity suggests management's confidence in the company's valuation and its ability to generate future returns. Investors should monitor the company's ongoing capital allocation strategies and the impact of these treasury shares on future financial metrics.

Key Highlights

  • 1CRH plc repurchased 276,000 ordinary shares on March 3, 2008.
  • 2The share repurchases were executed by Davy on behalf of CRH plc.
  • 3The purchase prices ranged from EUR23.74 to EUR24.202 per ordinary share.
  • 4The repurchased shares will be held as Treasury Shares.
  • 5CRH plc now holds a total of 6,333,999 ordinary shares in treasury.
  • 6The number of outstanding ordinary shares, excluding treasury shares, is 540,893,195.

Frequently Asked Questions

Companies typically repurchase their own shares to reduce the number of outstanding shares, which can increase earnings per share (EPS) and signal management's confidence in the company's stock value. These repurchased shares are often held as treasury stock, providing flexibility for future use in stock-based compensation plans, acquisitions, or to offset dilution from share issuances.

Treasury shares are shares that a company has repurchased from the open market and holds in its own treasury rather than canceling them. These shares do not have voting rights and do not receive dividends. They can be reissued later for various corporate purposes.

Based on the number of shares (276,000) and the price range (EUR23.74 to EUR24.202), the approximate total value of the repurchased shares is between EUR6,554,640 (276,000 * 23.74) and EUR6,670,752 (276,000 * 24.202).

Treasury shares are typically presented as a contra-equity account on the balance sheet, reducing total shareholders' equity. They do not impact the income statement, and earnings per share calculations are adjusted to reflect the reduced number of outstanding shares.