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CRH plc 2010 Interim Results - Six months ended 30th June 2010

24 August 2010

  2010
€ m
2009
€ m
% change
Revenue 7,658 8,292 -8%
EBITDA* 520 651 - 20%
Operating profit * 118 241 - 51%
Profit before tax 25 108 - 77%
€ cent € cent
Earnings per share 2.6 12.2 -79%
Cash earnings per share 59.9 75.7 -21%
Dividend per share 18.5 18.5 -

* EBITDA (earnings before interest, tax, depreciation and amortisation) and operating profit exclude profit on disposal of non-current assets.

  • EBITDA for the first half of 2010 was €520 million, in line with the guidance provided in the Trading Update Statement of 7th July 2010 (H1 2009: €651 million). Operating profit fell 51% to €118 million (2009: €241 million).

  • Profit before tax of €25 million was 77% below first-half 2009; the July Update Statement indicated that profit would be close to breakeven. First-half earnings per share fell 79% to 2.6c (H1 2009: 12.2c).

  • During the first six months of 2010, the Group spent €159 million on 14 acquisitions and investments. We made further progress on the development front in July and August with a further six transactions at a total cost of €86 million. We are seeing a good flow of bolt-on opportunities and we continue to monitor wider developments in our industry; however, we are maintaining a patient approach in progressing transactions in light of the challenging market backdrop.

  • Net debt at 30th June of €4,762 million (June 2009: €5,122 million) comprised gross debt (including derivatives) of €5,859 million and cash and liquid investments of €1,097 million. EBITDA/net interest cover for the 12 months to June 2010 was a comfortable 6.5 times (June 2009: 6.3 times) and net debt/EBITDA cover was 2.8 times (June 2009: 2.3 times).

  • With our strong balance sheet and anticipated strong second-half cash inflows, the 2010 interim dividend has been maintained at 18.5 cent in line with last year's level. The Board will decide on, and announce, the 2010 final dividend in March 2011 after taking into account the full year 2010 profit and development outturn and the economic and trading outlook at that time. The 2009 final dividend amounted to 44 cent.

Myles Lee, Chief Executive, said today:

"Since our 7th July Update, European economic indicators have been more encouraging although uncertainties remain; however, concerns relating to the recovery in the United States have increased with a continuing flow of disappointing economic data. Over this period, which represents the effective start of its main earnings season, our Americas Materials business has experienced weaker than expected volumes and more competitive pricing due to lower than anticipated levels of commercial construction and pull-backs in state and municipally funded projects. As a result second half US$ profitability in Americas Materials will be lower than last year compared with our previous estimate of an improved second half outturn. This combined with less favourable full year translation effects due to the strengthening of the euro indicates that our earlier expectation that overall Group EBITDA for the second half of 2010 would exceed 2009’s level is unlikely to be achieved. Arising from this we currently expect that full year Group EBITDA will show a decline of around 10% compared with the 2009 level of €1.8 billion.

With a robust balance sheet and an anticipated strong second-half cash inflow the Group is well positioned to respond to the current challenges and, against a tougher than anticipated second-half backdrop, is continuing to focus on cost reduction, cash generation and the identification and completion of suitable development opportunities."

Announced Tuesday, 24th August 2010


DISCLAIMER
This Interim Report 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.


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