8-K

CRH PUBLIC LTD CO 8-K Report (Nov 18, 2016)

Filed November 18, 2016For Securities:CRH

Summary

CRH plc issued a trading update for the nine months ended September 30, 2016, demonstrating robust performance across its global operations. The company reported a 22% increase in cumulative sales to €20.4 billion, with proforma sales up 6% year-over-year, driven by growth in the Americas and positive momentum in Europe. EBITDA for the period rose 14% on a proforma basis to €2.4 billion, highlighting effective operational leverage and margin improvements. The outlook for the full year 2016 remains strong, with an estimated EBITDA exceeding €3 billion, representing significant growth over the prior year. CRH also reaffirmed its commitment to financial discipline, expecting year-end net debt to be less than 2 times EBITDA, a key deleveraging target. The company highlighted specific regional performance, with the Americas showing strong EBITDA growth, particularly in Materials and Products, while Europe experienced positive trends in Heavyside and Lightside segments despite mixed conditions in distribution.

Key Highlights

  • 1CRH reported a 22% increase in nine-month sales to €20.4 billion, with proforma sales up 6% compared to the prior year.
  • 2Proforma EBITDA for the nine months increased by 14% to €2.4 billion, indicating improved profitability.
  • 3The full-year EBITDA is projected to exceed €3 billion, representing substantial growth and surpassing previous expectations.
  • 4CRH expects to achieve its net debt to EBITDA ratio target of less than 2x by year-end, demonstrating strong financial management.
  • 5The Americas division showed significant EBITDA growth (21% proforma), particularly in Materials and Products.
  • 6Europe's performance was positive, with proforma sales up 4% and EBITDA up 5% for the nine months, supported by Heavyside and Lightside segments.
  • 7The company noted limited Brexit impact on trading in the UK to date.

Frequently Asked Questions

CRH reported strong financial performance with cumulative sales of €20.4 billion, a 22% increase year-over-year. On a proforma basis, sales were up 6% and EBITDA increased by 14% to €2.4 billion, reflecting good operational leverage and improved margins across its divisions.

The company anticipates a strong full-year EBITDA outturn in excess of €3 billion, a significant increase of over 35% compared to 2015. CRH also expects to achieve its commitment of reducing year-end net debt to less than 2 times EBITDA.

The Americas division showed robust growth, with proforma sales up 8% and EBITDA up 21% for the nine months. Europe experienced positive trends with proforma sales up 4% and EBITDA up 5%, driven by its Heavyside and Lightside segments. The newly formed Asia division also contributed positively.

The company noted significant currency headwinds but expects its full-year EBITDA to be well ahead of last year. Regarding Brexit, CRH stated that there has been limited impact on trading in the UK to date.