8-K

CRH PUBLIC LTD CO 8-K Report (Mar 3, 2016)

Filed March 3, 2016For Securities:CRH

Summary

CRH Public Limited Company (CRH) reported its full-year results for 2015, highlighting significant profit growth driven by both strong performance in its existing businesses and strategic acquisitions. The company saw a substantial 25% increase in sales, reaching €23.6 billion, with EBITDA growing by an impressive 35% to €2.2 billion. This growth was significantly bolstered by the acquisition of the LH Assets (Lafarge and Holcim) for nearly €8 billion, which contributed positively to post-acquisition results. CRH also demonstrated strong cash generation, with cash inflow from operations increasing by 47% to €1.3 billion, enabling accelerated de-leveraging and an improvement in debt metrics, which are now ahead of target. The company maintained its dividend per share at 62.5 cents, covered 1.4 times by earnings. Looking ahead, CRH expressed confidence in continued growth for 2016, focusing on consolidating its gains and navigating global economic uncertainties.

Key Highlights

  • 1Total sales increased by 25% to €23.6 billion, with continuing operations up 17%.
  • 2EBITDA surged by 35% to €2.2 billion, exceeding previous guidance.
  • 3The company completed significant acquisitions totaling almost €8 billion, including the substantial LH Assets deal.
  • 4Cash generated from operations rose by 47% to €1.3 billion, contributing to accelerated de-leveraging.
  • 5Year-end net debt was €6.6 billion, with debt metrics ahead of target.
  • 6The dividend per share remained stable at 62.5 cents, with a dividend cover of 1.4 times.
  • 7CRH expects continued growth in 2016, focusing on consolidation and building upon 2015's gains.

Frequently Asked Questions

CRH's profit growth in 2015 was driven by a combination of strong performance from its heritage businesses and the significant contributions from strategic acquisitions, notably the acquisition of the LH Assets. Improved weather patterns in the Americas and positive currency translation effects also played a role.

The acquisition of the LH Assets, completed in the second half of 2015, made a strong contribution to sales and EBITDA. Post-acquisition, these businesses performed ahead of expectations, contributing €171 million in reported EBITDA after accounting for €197 million in transaction and one-off costs.

CRH reported strong cash generation in 2015, which led to accelerated de-leveraging and year-end net debt of €6.6 billion. The company's debt metrics are ahead of targets, and CRH is on track to restore them to normalized levels in 2016. The company also successfully raised significant capital through debt markets in 2015.

CRH anticipates a year of continued growth in 2016. The company plans to focus on consolidating its achievements from 2015 and building upon its gains, despite some global growth uncertainties. The outlook for the US economy remains positive, with moderate growth expected, while European markets are anticipated to be broadly stable with regional variations.