CRH plc 2008 interim results - six months ended 30th June 2008
26 August 2008
|2008-08-26Year ended 31st December ||2009 |
|% change |
|Revenue ||9,704 ||9,698 ||- |
|EBITDA* ||1,104 ||1,141 ||- 3% |
|Operating profit * ||712 ||771 ||- 8% |
|Profit on disposal of non-current assets ||24 ||22 ||+ 9% |
|Profit before tax ||606 ||670 ||- 10% |
| ||euro cent ||euro cent || |
|Earnings per share ||85.5 ||92.8 ||- 8% |
|Cash earnings per share ||158.2 ||160.9 ||- 2% |
|Dividend ||20.5 ||20.0 ||+2.5% |
* EBITDA and operating profit are stated before profit on disposal of fixed assets.
- In line with the guidance set out in our Interim Trading Statement in early July, profit before tax for the six months to 30th June decreased by 10% to euro 606 million while earnings per share fell by 8% to 85.5 cent. In constant currency terms profit before tax declined by 7% and earnings per share by 5%.
- Operating profit in Europe advanced by euro 20 million to euro 515 million, an increase of 4% with a strong 20% advance in Materials operating profit being partly offset by operating profit declines of 12% in Products and 3% in Distribution.
- Americas operating profit at euro 197 million was euro 79 million or 29% lower than first-half 2007. In US$ terms operating profit fell 18%; seasonally less significant first-half Materials operating profit fell by 47% impacted by poor weather, while Products was down 12% with Distribution 10% higher.
- As in prior years, the interim taxation rate of 23% (2007: 24.5%) is an estimate based on the current expected full year taxation rate.
- EBITDA/net interest cover remains high at 9 times for the twelve months to June 2008, well above the Group’s comfort range of 6 to 6.5 times.
- The interim dividend is 20.5c, an increase of 2.5%.
- First-half expenditure on acquisitions and investments totalled euro 0.7 billion including the purchase of a 45% stake in Indian cement manufacturer My Home Industries and 100% of UK construction accessories producer Ancon together with 35 other acquisitions across the Group’s operations.
Liam O’Mahony, Chief Executive, said today:
“Following 15 years of consecutive growth and a record performance in 2007, more difficult trading conditions and a weaker US$ will, as previously indicated, result in a lower outcome for 2008. The percentage decline in full year profit before tax is expected to be broadly similar to that reported for the first six months, with a lesser reduction in earnings per share due to the ongoing share buyback and an expected lower percentage tax charge. Against this background, CRH’s geographic, sectoral and product balance, combined with significant cost and commercial initiatives, underpins performance and cash flow."
Announced Tuesday, 26th August 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)
View the full release (PDF, 162KB, opens in a new window).
|Myles Lee ||Chief Executive |
|Glenn Culpepper ||Finance Director and Chief Executive Designate |
|Éimear O’Flynn ||Head of Investor Relations |
|Maeve Carton ||Group Controller |