8-K

CRH PUBLIC LTD CO 8-K Report (May 7, 2014)

Filed May 7, 2014For Securities:CRH

Summary

CRH Public Limited Company (CRH) released an Interim Management Statement on May 7, 2014, providing an update on its performance for the first four months of the year and its outlook for the remainder of 2014. The company reported a strong rebound in European sales, with like-for-like sales up 10% driven by improved economic trends and favorable weather compared to a difficult 2013. The Americas also saw a modest 2% like-for-like sales increase, despite challenging weather conditions. CRH anticipates a significant improvement in first-half EBITDA, expecting it to reach approximately €0.5 billion, a notable increase from €0.4 billion in the prior year. The company is on track to achieve its cost-saving targets and has made several small acquisitions. Furthermore, CRH provided an update on its portfolio review, indicating that 80% of its net assets are in core businesses, with plans to divest non-core assets representing about 10% of net assets. The outlook for the second half of 2014 remains cautiously optimistic, with expectations of EBITDA being somewhat ahead of the previous year, supported by acquisitions and cost initiatives, though the strong year-to-date growth in Europe is expected to moderate.

Key Highlights

  • 1Europe like-for-like sales increased by 10% in January-April 2014 compared to the same period in 2013, benefiting from improving economic trends and less severe weather.
  • 2Americas like-for-like sales grew by 2% in the first four months of 2014, despite adverse weather impacting many US regions.
  • 3First half EBITDA is projected to be approximately €0.5 billion, a significant increase from €0.4 billion in H1 2013.
  • 4CRH is on track to deliver €100 million in incremental cost savings for 2014.
  • 5Seven small acquisitions totaling €60 million have been completed in 2014, primarily in the US Products business.
  • 6Approximately 80% of CRH's net assets are in core businesses, with plans to divest non-core assets representing about 10% of net assets.
  • 7The company expects second-half EBITDA to be somewhat ahead of the prior year, assuming stable financial markets and beneficial weather patterns.

Frequently Asked Questions

CRH reported a 10% like-for-like sales increase in Europe and a 2% like-for-like sales increase in the Americas for the first four months of 2014. These figures exclude currency effects and the impact of acquisitions/divestitures.

The company expects its EBITDA for the less significant first half of the year to be approximately €0.5 billion, a notable improvement from €0.4 billion in the first half of 2013.

CRH has identified approximately 10% of its net assets as non-core and plans to divest these businesses. About 80% of net assets are in businesses that meet strategic and financial criteria, while the remaining 10% are under further assessment with a completion expected in Q3 2014.

CRH anticipates that second-half EBITDA will be somewhat ahead of the previous year (H2 2013: €1.08 billion). This is based on the assumption of stable financial markets and the ongoing benefits from acquisitions and cost-saving measures, although the strong year-to-date growth rate in Europe is expected to moderate.