CRH plc 2007 results - year ended 31st December 2007
04 March 2008
Record 2007 results - 15 consecutive years of growth
|Year ended 31st December ||2007 |
|% change |
|Revenue ||20.992 ||18,737 ||+ 12% |
|EBITDA* ||2,860 ||2,456 ||+ 16% |
|Operating profit * ||2.086 ||1,767 ||+ 18% |
|Profit on disposal of fixed assets ||57 ||40 ||+ 43% |
|Profit before tax ||1,904 ||1,602 ||+ 19% |
| ||euro cent ||euro cent || |
|Earnings per share ||262.7 ||224.3 ||+ 17% |
|Cash earnings per share ||404.9 ||352.1 ||+ 15% |
|Dividend ||68 ||52 ||+ 31% |
* EBITDA and operating profit are stated before profit on disposal of fixed assets.
- CRH has delivered another very strong performance in 2007 with full year profit before tax of euro 1,904 million, a 19% increase on 2006 (euro 1,602 million). Earnings per share increased 17% to 262.7c (2006: 224.3c). This represents CRH’s 15th consecutive year of profit and earnings growth.
- Operating profit in our Europe businesses grew euro 292 million to euro 1,106 million, up 36%. Organic growth, which accounted for euro 178 million or 61% of the increase, was more than double 2006 organic growth of euro 81 million.
- Operating profit for the Americas operations increased by euro 27 million to euro 980 million, up 3%. Robust organic performances in our Materials and Products activities plus an excellent contribution from APAC were offset by lower profits in Distribution and a euro 78 million impact due to a weaker US$.
- Overall operating profit margin increased to 9.9% (2006: 9.4%)
- Profit on disposal of fixed assets at euro 57 million was ahead of 2006 (euro 40 million). It is anticipated that a strong level of profit on disposals will be an ongoing feature of the Group’s activities.
- Expenditure on acquisitions and investments during 2007 totalled a record euro 2.2 billion. Nevertheless, EBITDA/net interest cover remained high at 9.4 times for the year (2006: 9.7 times), well above the Group’s comfort level of approximately 6 times.
- The proposed 31% total dividend increase for 2007 makes this the 24th consecutive year of dividend growth, and follows a 33% increase in 2006 reflecting the phased adjustment in dividend cover from 4.8 times in 2005 to a target of 3.5 times for 2008.
- In January CRH announced a share repurchase programme of up to 5% of the 547 million shares then in issue. A total of approximately 6 million shares have been repurchased during January and February 2008 at an average price of euro 25 per share.
- CRH remains committed to optimising the use of its balance sheet while maintaining an investment grade credit rating.
Liam O'Mahony, Chief Executive, said today:
"CRH's geographic,sectoral and product balance continued to deliver in 2007 both in terms of overall trading performance and acquisition activity. While developments over recent months have added to economic uncertainties, CRH is well positioned across its operations to deal with the evolving market circumstances. Following record levels of acquisition activity in 2006 and 2007, and with an ongoing strong pipeline of opportunities, we are continuing to develop our Western European and North American businesses while building on our growing platforms in emerging markets. With a relentless emphasis on operational efficiency, and targeted cost reduction measures, we remain focused on our twin goals - performance and growth - and on delivering a sixteenth consecutive year of profit and earnings growth in 2008."
Announced Tuesday, 4th March 2008
This Results Announcement contains certain forward-looking statements as defined under US legislation. By their nature, such statements involve uncertainty; as a consequence, actual results and developments may differ from those expressed in or implied by such statements depending on a variety of factors including the specific factors identified in this statement and other factors discussed in our Annual Report on Form 20-F filed with the SEC.
Contact CRH at Dublin 404 1000 (+353 1 404 1000)
|Liam O’Mahony ||Chief Executive |
|Myles Lee ||Finance Director |
|Éimear O’Flynn ||Head of Investor Relations |
|Maeve Carton ||Group Controller |
View the full release (PDF, 294KB, opens in a new window).