8-K

CRH PUBLIC LTD CO 8-K Report (Aug 25, 2009)

Filed August 25, 2009For Securities:CRH

Summary

CRH Public Ltd Co filed an 8-K on August 25, 2009, reporting its interim results for the six months ended June 30, 2009. The report highlights a significant decline in profitability, with profit before tax falling 82% year-over-year to €108 million, and earnings per share dropping 84% to 12.2 cent. This downturn is attributed to challenging economic conditions impacting construction activity across its key markets in Europe and the Americas. Despite the profit decline, the company successfully managed its operating cash outflow, which improved significantly compared to the prior year, and maintained its interim dividend at 18.50 cent per share.

Key Highlights

  • 1Revenue decreased by 15% to €8,292 million for the six months ended June 30, 2009.
  • 2EBITDA fell by 41% to €651 million, and operating profit declined by 66% to €241 million.
  • 3Profit before tax saw a substantial 82% decrease to €108 million, with earnings per share down 84% to 12.2 cent.
  • 4Operating cash outflow improved to €200 million, a significant reduction from €577 million in the prior year's first half.
  • 5The interim dividend was maintained at 18.50 cent per share, consistent with the prior year's adjusted dividend.
  • 6Net debt decreased to €5.12 billion from €6.56 billion in the prior year.
  • 7The company is actively implementing cost reduction measures, targeting €1.45 billion in total gross annualised savings by 2010.

Frequently Asked Questions

The primary driver was the challenging global economic environment, which led to reduced construction activity across CRH's key European and American markets. This resulted in lower demand and sales volumes for the company's building materials and products.

CRH implemented tight control over capital expenditures and achieved a lower seasonal working capital requirement. These measures, combined with strong second-half cash inflow expectations, led to a significant improvement in operating cash outflow compared to the previous year.

Yes, CRH invested €0.3 billion in acquisitions and investments during the period. However, their development efforts remain focused on transactions that offer compelling value and exceptional strategic fit, reflecting a disciplined approach in the current economic climate.

CRH anticipates that overall group profitability in the second half will be lower than in 2008. However, they expect the rate of profit decline to moderate due to aggressive cost reduction measures, more moderate input costs, and a seasonally stronger second half. The company remains focused on commercial delivery and cash generation.