8-K

CRH PUBLIC LTD CO 8-K Report (Aug 20, 2014)

Filed August 20, 2014For Securities:CRH

Summary

CRH Public Ltd Co. reported its interim results for the six months ended June 30, 2014, showcasing a 4% increase in sales revenue to €8.3 billion, driven by a 7% rise in Europe and a 1% increase in the Americas. The company achieved a significant 27% year-over-year increase in EBITDA, reaching €505 million, indicating strong operating leverage and improved margins across most segments. This performance was bolstered by favorable early weather conditions in Europe and a continuing recovery in the US, although severe weather in the Americas impacted some of its operations. Operationally, CRH maintained its dividend per share at 18.5c and is actively pursuing a multi-year divestment program targeting €1.5 to €2 billion of non-core assets. The company also reported €130 million in acquisitions/investments during the first half of the year and is on track to achieve its €100 million incremental cost savings target for 2014. Despite a seasonal increase in net debt to €3.7 billion, this represents a decrease from the previous year, supported by strong cash flow management.

Key Highlights

  • 1Sales revenue increased by 4% to €8.3 billion, with Europe up 7% and the Americas up 1%. Like-for-like sales grew by 5%.
  • 2EBITDA saw a substantial 27% increase to €505 million, reflecting strong operating leverage and improved margins.
  • 3The interim dividend per share remained unchanged at 18.5c.
  • 4A significant portfolio review is underway, with a multi-year divestment program targeting €1.5 to €2 billion in sales of non-core businesses.
  • 5Acquisitions and investments totaled €130 million in the first half of 2014.
  • 6Incremental cost savings of €45 million were achieved, with a full-year target of €100 million on track.
  • 7Net debt decreased by €0.5 billion year-over-year to €3.7 billion, despite seasonal working capital outflows.

Frequently Asked Questions

CRH reported a 4% increase in sales revenue to €8.3 billion and a significant 27% increase in EBITDA to €505 million. Profit before tax turned positive at €61 million compared to a loss of €71 million in the prior year, and basic earnings per share were 6.1c.

Europe showed a strong performance with sales revenue up 7% and a significant EBITDA increase due to favorable weather and improved operational efficiencies. The Americas experienced mixed results; while overall sales were up 1%, severe weather impacted some operations, although underlying sales and EBITDA showed growth in US Dollar terms.

CRH is actively undertaking a multi-year divestment program targeting approximately €1.5 to €2 billion of businesses that no longer meet its returns and growth criteria or strategic fit. This is part of an effort to focus on core businesses and optimize capital allocation for future growth.

CRH anticipates second-half Group EBITDA to be somewhat ahead of the previous year, assuming normal weather patterns and no major market dislocations. The company expects continued improvement in the Americas, while acknowledging some easing of trends in Europe.