8-K

CRH PUBLIC LTD CO 8-K Report (Apr 21, 2008)

Filed April 21, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on April 21, 2008, reporting a significant transaction in its own shares. The company announced that on April 18, 2008, it repurchased 100,000 ordinary shares at an average price between EUR23.95 and EUR24.28 per share. These repurchased shares will be held as treasury shares, increasing CRH's treasury share balance to 9,646,450 shares. This share repurchase activity signals management's confidence in the company's valuation and its commitment to returning capital to shareholders. Investors should note that the number of outstanding shares, excluding treasury shares, now stands at 537,580,744. This reduction in outstanding shares can positively impact earnings per share (EPS) if net income remains constant or grows, potentially making the stock more attractive.

Key Highlights

  • 1CRH plc repurchased 100,000 ordinary shares on April 18, 2008.
  • 2The average purchase price for the repurchased shares ranged from EUR23.95 to EUR24.28.
  • 3The acquired shares will be held as treasury shares.
  • 4CRH plc's treasury share balance increased to 9,646,450 shares following this transaction.
  • 5The total number of ordinary shares in issue, excluding treasury shares, is now 537,580,744.
  • 6The filing was made on Form 6-K on April 21, 2008.

Frequently Asked Questions

Share repurchases generally signal that management believes the company's stock is undervalued. It also reduces the number of outstanding shares, which can increase earnings per share (EPS) and potentially boost the stock price. Companies may also repurchase shares to offset dilution from stock options or to return excess cash to shareholders.

Treasury shares are shares that a company has repurchased from the open market. They are held by the company rather than being retired or reissued. Companies hold treasury shares for various strategic reasons, including to satisfy employee stock option plans, for use in acquisitions, to increase EPS by reducing the number of outstanding shares, or to support the stock price.

The repurchase of 100,000 shares reduces the total number of shares outstanding. While CRH now holds 9,646,450 treasury shares, the number of shares in issue that are available to the public and investors is 537,580,744, which is lower than before this transaction.

A Form 6-K is a report of foreign private issuers filed with the SEC. It is used to furnish information that the company has made or is required to make public in its home country, or that it has distributed or made available to its security holders. In this case, CRH is using it to report a transaction in its own shares.