CRH plc 2006 results - year ended 31st December 2006
06 March 2007
|Year ended 31st December ||2006 |
|% change |
|Revenue ||18,737 ||14,449 ||+ 30% |
|Operating profit * ||1,767 ||1,392 ||+ 27% |
|Profit before tax ||1,602 ||1,279 ||+ 25% |
| ||euro cent ||euro cent || |
|Earnings per share ||224.3 ||186.7 ||+ 20% |
|Cash earnings per share ||352.1 ||292.5 ||+ 20% |
|Dividend ||52.0 ||39.0 ||+ 33% |
* Operating profit is stated before profit on disposal of fixed assets.
- Against a background of higher input costs and declining US residential construction, CRH has once again performed strongly in 2006 to deliver record full year organic growth and a significant incremental contribution from acquisition activity.
- Total operating profit from European operations improved 20% to euro 814 million after net non-recurring charges of euro 12 million.
- In Europe Materials, after a good first half improvement, stronger momentum in the second half resulted in full year operating profit of euro 421 million, an increase of 12%.
- Europe Products benefited from good acquisition contributions and with stronger underlying second half trading reported a 26% increase in operating profit to euro 221 million, an increase of 44% before a euro 31 million non-recurring charge.
- Europe Distribution delivered satisfactory acquisition contributions and good organic growth to report a 39% increase in operating profit to euro 172 million, an increase of 24% before euro 19 million of non-recurring income.
- Total operating profit for the Americas operations improved 33% to euro 953 million.
- Americas Materials achieved a 45% increase in operating profit to euro 475 million reflecting significant success in the recovery of higher input costs, a substantial organic operating profit advance and good acquisition contributions.
- Americas Products delivered a 22% increase in operating profit to euro 375 million, a combination of organic growth and satisfactory acquisition contributions.
- Full year operating profit from Americas Distribution grew by 28% to euro 103 million with the operating margin at 7.1% similar to the excellent level achieved in 2005.
- The total dividend has been increased by 33%. This reflects the first step in a phased reduction in dividend cover aimed at achieving cover of the order of 3.5 times for the 2008 financial year. The 2006 dividend was covered 4.3 times (2005: 4.8 times).
- Total acquisition expenditure was a record euro 2.1 billion (net of selective APAC disposals). EBITDA/net interest cover for the year remained very comfortable at 9.7 times.
Liam O’Mahony, Chief Executive, said today:
“2006 was another year of delivery by CRH both in development, with a record acquisition spend, and operationally, with record organic growth and strong improvements in all key financial performance measures. Cash generation remains robust and with comfortable interest cover the Group can accommodate a higher level of dividend payout while continuing to take advantage of a strong development pipeline. With an ongoing focus on price and cost effectiveness across our operations, further benefits from the record 2006 acquisition spend and a sustained emphasis on development, we expect to achieve further progress in the year ahead.”
Announced Tuesday, 6th March 2007
View the full release (PDF, 159KB, opens in a new window).