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[August 2007]
CRH Interim Results Highlights
Highlights of the interim results announced by CRH plc are as follows:* EBITDA and operating profit are stated before profit on disposal of fixed assets.
With a particularly strong performance in Europe significantly outweighing more challenging conditions in the Americas, profit before tax for the six months to 30 June 2007 increased by 27% to €670 million while earnings per share grew by 26% to 92.8 euro cent. Operating profit in Europe advanced by €165 million to €495 million, an increase of 50%. Organic growth, which accounted for €120 million or 73% of the first half increase, is substantially ahead of the full year 2006 organic growth of €81 million. Operating profit in the Americas declined by €7 million (2.5%) to €276 million. Robust organic performances in the Materials and Products activities plus an excellent contribution from APAC were outweighed by lower profits in Distribution and the impact of a weaker US$. Profit on disposal of fixed assets at €22 million was ahead of Interim 2006 (€17 million). It is anticipated that profit on disposal of fixed assets for the full year will exceed last year's €40 million and that disposal of surplus properties will be an ongoing feature of the Group's activities. EBITDA/net interest cover remains high at over 9 times for the twelve months to June 2007, well above the Group's comfort level of approximately 6 times. CRH is committed to optimising the use of its balance sheet while maintaining an investment grade credit rating. The 48% interim dividend increase reflects both the ongoing adjustment in dividend cover from 4.8 times in 2005 to a target of 3.5 times in 2008 and the broad re-establishment of the traditional split between interim and final dividends. First half expenditure on acquisitions and investments totalled almost €1 billion including the purchase of publicly-quoted Swiss builders merchant Getaz Romang and CRH's first transactions in China and Turkey. Liam O'Mahony, Chief Executive, said: "CRH's geographic, sectoral and product balance continues to deliver in 2007 both in terms of overall trading performance and development activity. With an ongoing focus on price and cost effectiveness driving organic performance, benefits from the record 2006 acquisition spend and a sustained development emphasis, we expect strong full year profit growth".
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ENDS