8-K

CRH PUBLIC LTD CO 8-K Report (May 8, 2013)

Filed May 8, 2013For Securities:CRH

Summary

CRH Public Limited Company's (CRH) May 8, 2013, Interim Management Statement indicates a challenging first four months of 2013, primarily due to prolonged winter weather across Europe and parts of the Americas. Like-for-like sales in Europe were down 12% and in the Americas down 2%, impacted by severe weather conditions that contrasted with the favorable weather experienced in early 2012. The company anticipates first-half 2013 EBITDA to be approximately €0.4 billion, a decrease from the restated €0.48 billion in H1 2012, partly due to unfavorable weather and the absence of prior-year non-recurring gains. Despite the weak start, CRH remains optimistic about the second half of 2013, expecting underlying positive trends in the US to offset trading pressures in Europe. The company forecasts second-half EBITDA to be ahead of the 2012 period, assuming normal weather patterns and continued economic recovery in the Americas. CRH continues to pursue its growth strategy through acquisitions, having completed 15 transactions totaling €385 million year-to-date, including a significant acquisition in Ukraine that would establish market leadership in cement.

Key Highlights

  • 1Europe's like-for-like sales declined by 12% for January-April 2013 due to weak economic conditions and prolonged winter weather.
  • 2Americas' like-for-like sales decreased by 2% in January-April 2013, as improving construction trends were offset by adverse weather.
  • 3Expected EBITDA for the first half of 2013 is approximately €0.4 billion, lower than the restated H1 2012 EBITDA of €0.48 billion.
  • 4CRH is implementing cost reduction initiatives in Europe to counteract market weakness.
  • 5The company has completed 15 acquisitions and investments year-to-date, totaling €385 million.
  • 6Second-half 2013 EBITDA is projected to exceed the second-half 2012 EBITDA, driven by expected progress in the Americas.
  • 7CRH has agreed to acquire Mykolaiv Cement in Ukraine for €96 million, subject to regulatory approval, which would make it the market leader in Ukraine's cement sector.

Frequently Asked Questions

The primary reasons cited are prolonged and severe winter weather conditions in Europe and parts of the Americas, which significantly disrupted construction activity. This was compounded by a challenging economic backdrop in Europe.

CRH anticipates that underlying positive economic and construction trends in the United States will continue and offset the trading pressures experienced in Europe. Assuming normal weather patterns, the company expects second-half EBITDA to be ahead of the corresponding period in 2012.

CRH continues to actively pursue its acquisition strategy, having completed 15 transactions totaling approximately €385 million year-to-date in 2013. These acquisitions are focused on complementing existing businesses and expanding market presence, such as the proposed acquisition of Mykolaiv Cement in Ukraine.

Effective January 1, 2013, CRH will equity account for joint ventures instead of proportionately consolidating them. A revised pension accounting standard will also change the calculation of net pension expense. These changes required restatement of comparative 2012 financial data for EBITDA to ensure consistency.