8-K

CRH PUBLIC LTD CO 8-K Report (Mar 3, 2010)

Filed March 3, 2010For Securities:CRH

Summary

CRH Public Limited Company (CRH) reported its full-year results for 2009, showing a significant downturn driven by challenging market conditions across residential and non-residential sectors in both Europe and the US. Revenue decreased by 17% to €17,373 million, and EBITDA fell 32% to €1,803 million. The company experienced a substantial 48% drop in operating profit to €955 million, largely due to restructuring and impairment charges. Despite these headwinds, CRH maintained its commitment to shareholders by increasing its dividend per share slightly to 62.5c, marking its 26th consecutive year of dividend growth. The company also demonstrated a strong focus on financial health, significantly reducing net debt to €3.7 billion from €6.1 billion through robust operating cash flow and proceeds from a rights issue, positioning it with a flexible balance sheet.

Key Highlights

  • 1Revenue declined 17% to €17,373 million in 2009 compared to €20,887 million in 2008.
  • 2EBITDA decreased by 32% to €1,803 million, though it was in line with company guidance.
  • 3Operating profit saw a significant drop of 48% to €955 million, impacted by €205 million in restructuring charges.
  • 4Earnings per share (EPS) fell sharply by 58% to 88.3c (adjusted for the 2009 Rights Issue).
  • 5CRH reported a dividend per share of 62.5c, representing a slight increase and the 26th consecutive year of dividend growth.
  • 6Net debt was reduced substantially to €3.7 billion from €6.1 billion, supported by strong operating cash flow and a rights issue.
  • 7Operating cash flow doubled to €1.2 billion in 2009, driven by working capital reduction and capital expenditure restraint.

Frequently Asked Questions

The primary drivers were challenging market conditions across residential and non-residential construction sectors in both Europe and the United States. These challenging conditions led to significant volume declines across most of CRH's business segments.

CRH significantly reduced its net debt to €3.7 billion from €6.1 billion. This was achieved through strong operating cash flow generation, which doubled compared to the previous year, and proceeds from a rights issue conducted in March 2009.

CRH reported a dividend per share of 62.5c, a slight increase from the previous year, marking its 26th consecutive year of dividend growth. This demonstrates the company's commitment to returning value to shareholders even during a difficult economic period and highlights its confidence in its long-term financial stability and cash generation capabilities.

CRH anticipates a difficult demand backdrop for much of 2010, with continued declines in non-residential activity. The company expects challenges from severe weather impacting the start of the year and ongoing concerns about fiscal deficits in some European countries. However, CRH also notes that its operational and financial restructuring, along with its strong balance sheet, positions it well to respond to potential upside demand and to pursue value-enhancing acquisition opportunities.