8-K

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

Filed July 8, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) issued a trading statement on July 8, 2008, providing an update for the six months ended June 30, 2008. The company anticipates a decline in its first-half profit before tax to approximately €0.6 billion, down from €0.67 billion in the same period of 2007, partly due to an adverse translation effect of €20 million from a weaker US Dollar. Despite a challenging economic environment marked by negative economic developments and financial market pressures leading to weaker demand, CRH has continued its strategic investment in acquisitions, spending over €0.7 billion in the first half of the year and planning further investments of approximately €0.6 billion for announced transactions. The company is actively managing these headwinds through cost reduction measures and an intensified focus on operational efficiency.

Key Highlights

  • 1CRH expects first-half 2008 profit before tax of approximately €0.6 billion, a decrease from €0.67 billion in H1 2007, impacted by a €20 million adverse translation effect from currency fluctuations.
  • 2Acquisition spend in the first half of 2008 exceeded €0.7 billion, with further announced transactions expected to cost approximately €0.6 billion.
  • 3European operations anticipate a 5% increase in operating profit, driven by Central Eastern Europe and acquisitions, which offset declines in Ireland, the UK, and Spain.
  • 4Americas Materials segment experienced a challenging period, with operating profit expected to be approximately 40% lower than H1 2007 due to exceptionally wet weather in May and June.
  • 5CRH has repurchased approximately 14 million shares (2.6% of shares in issue at year-end 2007) under its share repurchase program.
  • 6The company anticipates a high single-digit percentage decline in full-year 2008 reported profit before tax compared to the record €1.904 billion in 2007, due to ongoing economic pressures.
  • 7CRH is implementing significant cost reduction measures and focusing on operational efficiency to navigate weaker demand and financial market pressures.

Frequently Asked Questions

CRH expects its profit before tax for the six months ended June 30, 2008, to be approximately €0.6 billion, compared to €0.67 billion reported for the same period in 2007.

CRH has implemented significant cost reduction measures over the past 18 months and is intensifying its focus on operational efficiency and commercial delivery across its businesses to address weaker demand and financial market pressures.

Based on current trends and currency weakness, CRH anticipates that its full-year 2008 reported profit before tax may show a high single-digit percentage decline compared to the record €1.904 billion achieved in 2007. The expected decline in earnings per share will be less due to share buybacks and a lower anticipated tax charge.

CRH has continued its investment in acquisitions, with over €0.7 billion spent in the first half of 2008. The company also has announced transactions in China and the United States expected to be completed later in the year, with an approximate cost of €0.6 billion.