8-K

CRH PUBLIC LTD CO 8-K Report (Aug 16, 2011)

Filed August 16, 2011For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K on August 16, 2011, reporting its interim results for the six months ended June 30, 2011. The company demonstrated a significant turnaround, with revenue increasing by 7% to €8,166 million and EBITDA rising by 10% to €574 million. Profit before tax saw a substantial increase of 280% to €95 million, resulting in earnings per share of 10.7 cents, a significant jump from 2.6 cents in the prior year's comparable period. This improved performance was attributed to strong results from CRH's Products and Distribution operations in both Europe and the Americas, coupled with the benefits of ongoing reorganisation and restructuring efforts. The company also successfully reduced its net debt by 17% to €3,942 million, showcasing a strong balance sheet. Despite positive interim results, CRH acknowledged increased market risks and uncertainties for the second half of 2011 due to downward revisions in economic growth estimates and global financial market turbulence, emphasizing a continued focus on operational efficiency and cost recovery.

Key Highlights

  • 1Sales revenue for H1 2011 increased by 7% to €8,166 million, up from €7,658 million in H1 2010.
  • 2EBITDA grew by 10% to €574 million, exceeding prior year's €520 million and aligning with earlier guidance.
  • 3Profit before tax saw a dramatic increase of 280%, reaching €95 million compared to €25 million in H1 2010.
  • 4Earnings per share (EPS) rose significantly to 10.7 cents from 2.6 cents in the same period last year.
  • 5Net debt was reduced by 17% to €3,942 million as of June 30, 2011, down from €4,762 million a year earlier, indicating strengthened financial health.
  • 6The company maintained its interim dividend per share at 18.5 cents.
  • 7CRH invested €380 million in acquisitions and investments year-to-date, including 7 transactions completed after June 30, 2011, while also completing disposals totaling €392 million.

Frequently Asked Questions

The improved performance was primarily driven by strong results from CRH's Products and Distribution operations across both Europe and the Americas. Additionally, the company benefited from the positive impact of its ongoing reorganisation and restructuring measures implemented in response to challenging market conditions in prior years.

CRH significantly strengthened its financial position. Net debt was reduced by 17% to €3,942 million compared to the previous year. The company also maintained a strong balance sheet, with EBITDA covering net interest expenses 7.0 times (12 months to June 2011), an improvement from 6.5 times in the prior year.

CRH acknowledges increased market risks and uncertainties for the second half of 2011, citing downward revisions to economic growth estimates and turbulence in global financial markets. Despite these challenges, the company remains focused on operational and commercial excellence, aiming to recover higher input costs through price increases and deliver a year of progress for CRH in 2011.

No, CRH maintained its interim dividend per share at 18.5 cents, the same level as the previous year. A scrip dividend alternative will be offered to shareholders.