CRH plc, the international building materials group, issues the following Trading Update for the period 1 January 2016 to 30 September 2016.


Trading Performance
  • As expected, third quarter trading benefited from continued growth in the Americas, albeit at a more modest pace than in the first half which benefited from favourable early season weather; in Europe the momentum remained positive.
  • Cumulative sales amounted to €20.4 billion for the nine months to the end of September, an increase of 22% compared with the corresponding period in 2015. On a proforma1 basis, sales were 6% higher than 2015.
Proforma 2016 sales change versus 2015 Europe Americas Asia Group
First half (H1)+3%+13%+4%+8%
Quarter 3 (Q3)+4%+1%+3%+2%
9 months to September (9M) +4% +8% +4% +6%
  • EBITDA for the nine months to the end of September was €2.4 billion, an increase of 14% on proforma 2015.
Proforma 2016 EBITDA change versus 2015Europe Americas Asia Group 
First half (H1)+5%+39%+7%+20%
Quarter 3 (Q3)+5%+11%+8%+9%
9 months to September (9M) +5% +21% +7% +14%
  • A relentless focus on performance in all our businesses, coupled with our vertically integrated business model for heavyside materials, delivered good operational leverage underpinning improved margins and returns.
Full Year Outlook
  • As previously stated and despite significant currency headwinds, overall EBITDA outturn for the year is estimated to be in excess of €3 billion, well ahead (> 35%) of last year (2015 reported: €2.22 billion); the expected outturn includes a full year contribution from 2015 acquisitions and is after taking into account the impact of divestments and one-off items.
  • We continue to maintain a strong focus on prudent financial management, and we remain on track to deliver year-end net debt of less than 2 times EBITDA.

We expect full year depreciation and amortisation expense to be circa €1.1 billion (2015 reported: €0.9 billion).

Profits on sale of property, plant and equipment for 2016 are expected to be broadly similar to last year (2015 reported: €39 million). The net gain/loss on business disposals in 2016, which is dependent on the timing of divestment transactions still to be completed, is unlikely to be material (2015 reported: €62 million).

The Group's share of profits from equity-accounted entities is expected to be approximately €30 million (2015 reported: €44 million), reflecting the sale of certain investments in 2015 and reduced performance in some markets.

Net finance costs are expected to be broadly similar to last year (2015 reported: €389 million) as the non-recurrence of a cost of €38 million charged in 2015 for the early redemption of a portion of the US$ bonds is expected to be offset by the cost of increased debt in 2016.

1 Proforma comparisons are at constant currency; include the 2015 pre-acquisition trading of the LH and CRL acquisitions; and exclude all divested entities and certain one-off items.


CRH will report its Preliminary Results for full year 2016 on Thursday, 2 March 2017.


Disclaimer

This document 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 document and other factors discussed in our Annual Report on Form 20-F filed with the SEC.

CRH plc will host an analysts’ conference call at 08:30 GMT on Thursday, 17 November 2016 to discuss the statement. To join this call please dial: +353 (0)1 2460271 using Conference Code 6886650#, PIN *0 (further international numbers are available here). A presentation to accompany this call and audio playback will be available on the Results and Presentations page of the CRH website.


Contact CRH at Dublin 404 1000 (+353 1 404 1000)
Albert ManifoldChief Executive
Senan MurphyFinance Director
Frank HeisterkampHead of Investor Relations
Mark CahalaneGroup Director, Corporate Affairs