8-K

CRH PUBLIC LTD CO 8-K Report (Nov 12, 2009)

Filed November 12, 2009For Securities:CRH

Summary

CRH Public Ltd Co. (CRH) filed an Interim Management Statement on November 10, 2009, detailing trading performance and outlook. The company reported continued difficult trading conditions across its businesses, with a like-for-like decline in third-quarter Group sales of 19%. However, the rate of profit decline eased compared to the first half of the year, with Group EBITDA declining by approximately 25% in Q3 versus a 41% decline in H1. Cash flow remained strong, leading to a significant reduction in net debt by €0.9 billion in the third quarter. CRH also continued its development strategy, making strategic acquisitions in the Americas Materials division and expanding its stake in Yatai Cement Group in China. Despite ongoing challenges, CRH is focused on cost reduction and operational initiatives, positioning itself to capitalize on future opportunities.

Key Highlights

  • 1Third-quarter Group sales declined 19% on a like-for-like basis, an improvement from the 21% decline in the first half.
  • 2Group EBITDA declined approximately 25% in Q3, a notable improvement from the 41% decline in the first half.
  • 3Net debt was reduced by €0.9 billion in Q3, standing at €4.2 billion as of September 30, 2009.
  • 4CRH completed a strategic acquisition in its Americas Materials division (Hilty Quarries in Missouri) and expanded its stake in Yatai Cement Group in China.
  • 5Full-year 2009 EBITDA is now expected to decline by approximately one-third, with profit before tax projected between €730 million and €760 million.
  • 6The company anticipates an EBITDA decline for the final quarter of 2009 exceeding that of the third quarter due to weather and restructuring costs.
  • 7Cost reduction measures are expected to deliver total annualised gross savings of €1.45 billion by 2010.

Frequently Asked Questions

CRH experienced continued difficult trading conditions, with a 19% like-for-like decline in third-quarter sales. However, the rate of profit decline eased significantly, with EBITDA down 25% in Q3 compared to a 41% decline in the first half. The company also demonstrated strong cash flow, reducing net debt by €0.9 billion in the quarter.

CRH now expects a full-year EBITDA decline of approximately one-third and projects profit before tax to be between €730 million and €760 million. The fourth quarter is anticipated to see an EBITDA decline exceeding that of the third quarter due to adverse weather and implementation of further efficiency measures.

CRH continued its disciplined acquisition strategy, strengthening its Americas Materials division with the acquisition of Hilty Quarries in Missouri. Additionally, its investment in Yatai Cement Group in China expanded its market presence in northeastern China.

CRH is actively implementing cost reduction initiatives, which are projected to deliver total annualised gross savings of €1.45 billion by 2010. The company is incurring costs to implement these measures, with additional costs expected in the fourth quarter.