8-K

CRH PUBLIC LTD CO 8-K Report (Mar 1, 2011)

Filed March 1, 2011For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed its 2010 full-year results on March 1, 2011. The report indicates a challenging year with sales revenue slightly down by 1% to €17.2 billion and EBITDA decreasing by 10% to €1.6 billion. This decline was attributed to difficult market conditions across its European and American segments, impacted by economic slowdowns and adverse weather. Despite these headwinds, CRH maintained its dividend at 62.5c per share and reported strong operating cash flow of €665 million, driven by effective working capital management and restrained capital expenditure. The company highlighted its robust balance sheet, with year-end net debt at €3.5 billion and a net debt to EBITDA ratio of 2.2x. CRH also continued its strategic acquisition program, spending €567 million on 28 bolt-on acquisitions to expand its geographic reach and market position. Looking ahead to 2011, CRH expressed cautious optimism, expecting stabilized demand and potential for like-for-like revenue growth, contingent on price progress and recovery of input costs.

Key Highlights

  • 1Sales revenue for 2010 was €17,173 million, a slight decrease of 1% compared to 2009 (€17,373 million).
  • 2EBITDA decreased by 10% to €1,615 million, falling within the company's guided range.
  • 3Profit before tax was €534 million, a 27% decrease from €732 million in 2009.
  • 4Earnings per share (EPS) significantly declined by 31% to 61.3 cents from 88.3 cents in 2009.
  • 5The company maintained its dividend per share at 62.5 cents.
  • 6Operating cash flow was strong at €665 million, supported by working capital inflows and controlled capital expenditure.
  • 7Total acquisition spend for 2010 was €567 million across 28 acquisitions.
  • 8Year-end net debt was €3.5 billion, with a net debt/EBITDA ratio of 2.2x, indicating a strong balance sheet.

Frequently Asked Questions

CRH reported a challenging year in 2010. Sales revenue was €17.2 billion, down 1% from 2009. EBITDA decreased by 10% to €1.6 billion, and profit before tax fell by 27% to €534 million. Earnings per share saw a significant decline of 31% to 61.3 cents. However, the company maintained its dividend at 62.5 cents per share and generated strong operating cash flow of €665 million.

CRH maintained a strong balance sheet. Year-end net debt stood at €3.5 billion, a decrease from the prior year. The net debt to EBITDA ratio was 2.2x, and EBITDA to net interest cover was 6.5x, indicating solid financial health and flexibility. The company also completed a US$750 million bond issue in November 2010 to manage its debt profile.

The company expressed cautious optimism for 2011, noting that demand across the Group appeared to have stabilized in the latter part of 2010. CRH anticipates like-for-like revenue growth for the full year 2011, provided there are no major market dislocations. Key to this growth will be achieving price progress to recover higher input costs. Acquisitions completed in the preceding eight months are expected to contribute positively, and the company believes its strong balance sheet provides capacity for further value-driven opportunities.

The decline in profitability was primarily driven by challenging market conditions across CRH's operating segments, particularly in Europe and the Americas. This included continued volume declines in key product lines, price pressure, and higher energy costs in some regions. The company also incurred significant impairment charges (€124 million in 2010) and restructuring costs (€100 million in 2010) to mitigate the impact of difficult market conditions.