8-K

CRH PUBLIC LTD CO 8-K Report (Apr 27, 2016)

Filed April 27, 2016For Securities:CRH

Summary

CRH Public Limited Company issued a trading update on April 27, 2016, providing insights into its performance for the first quarter of 2016 (ending March 31, 2016) and outlook for the remainder of the year. The company reported a strong start to the year, with a 9% increase in first-quarter sales compared to proforma 2015 figures, largely driven by significant growth in the Americas. The update highlights a positive trading backdrop across its major markets, with Americas sales up 22%, Asia up 12% (primarily due to strong cement demand in the Philippines), and Europe sales in line with proforma 2015. CRH expects Group EBITDA for the seasonally slower first half of 2016 to be close to €1 billion, indicating mid-single-digit percentage growth. Looking ahead, the company anticipates continued progress in the second half of the year, supported by improving construction demand in the US, moderate increases in US infrastructure funding, and continued growth in the Philippines. The company also completed divestments totaling €78 million and made acquisitions/investments of €85 million in Q1, largely in the Americas.

Key Highlights

  • 1Q1 2016 sales increased by 9% year-over-year on a proforma basis.
  • 2Americas region showed significant strength with a 22% sales increase in Q1 2016.
  • 3Asia region sales were up 12% in Q1 2016, driven by strong cement demand in the Philippines.
  • 4Europe region sales were in line with proforma 2015 for Q1 2016, with regional variations.
  • 5Group EBITDA for the first half of 2016 is expected to be around €1 billion, representing mid-single-digit growth.
  • 6CRH expects continued progress in Group EBITDA for the second half of 2016.
  • 7The company completed €78 million in divestments and €85 million in acquisitions/investments during Q1 2016.

Frequently Asked Questions

CRH reported a 9% increase in sales for the first quarter of 2016 compared to the proforma 2015 figures. This growth was driven by strong performance in its major markets.

The Americas region demonstrated the strongest performance with a 22% increase in sales. The Asia region also saw significant growth, with sales up 12%, largely due to strong cement demand in the Philippines.

CRH expects its Group EBITDA for the seasonally less significant first half of 2016 to be close to €1 billion, representing mid-single-digit percentage growth. The company anticipates continued progress on a Group EBITDA basis for the second half of the year.

The FAST Act, a new federal highway funding program passed in 2015 in the US, is expected to contribute to a moderate increase in US infrastructure funding. This is anticipated to support modest growth in construction demand and CRH's performance in the Americas during the second half of 2016.