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[August 2009]
CRH 2009 Interims
CRH Plc (Dublin, Republic of Ireland) has reported on interim results for the six months to 30 June 2009. Revenue stood at €8.292 billion as against €9.704 billion last time, down 15% (or down 18% at constant FX). EBITDA (stated before profit on disposal of non-current assets) was €651 million, down 41% from last time’s €1.104 billion. Operating profit was €214 million as against €712 million in H1 2008. Profit before tax was €108 million by comparison with €606 million last time.In its notes to the statement, CRH stated that while the rate of decline in the second quarter eased substantially compared with the first three months of the year, EBITDA for the half year fell by €453 million (-41%) to €651 million in line with the guidance set out in its Interim Trading Statement in early July. Operating profit declined by two-thirds, a higher decline than at EBITDA level due to the fact that depreciation and amortisation charges for the half year at €410 million were broadly in line with last year (2008: €392 million).
Profit before tax amounted to €108 million after restructuring costs of €74 million and an adverse translation impact at profit before tax level of €21 million. This compared with the first-half 2008 profit before tax of €606 million. Earnings per share fell 84% to 12.2 cent.
The traditional seasonal first-half operating cash outflow amounted to €200 million, a marked improvement on first-half 2008 (€577 million outflow) with tight control of capital expenditure and delivery of a lower seasonal working capital requirement more than compensating for lower profitability.
With good first-half operating cash flow delivery despite lower profits, and with expected strong second-half inflows, the Board has decided it was appropriate to maintain the interim dividend at 18.50 cent (2008 interim dividend adjusted for the effect of the March 2009 Rights Issue: 18.48 cent). The Board will decide on and announce the 2009 final dividend in March 2010 after taking into account the economic, financial and trading outlook at that time and other relevant factors. The adjusted 2008 final dividend amounted to 43.74 cent.
During the period, the group spent €0.3 billion on acquisitions and investments. It said that while it was seeing an increased flow of potential opportunities, in the current economic climate its development efforts remain focussed on transactions that offer “compelling value and exceptional strategic fit”.
Net debt at 30 June 2009 of €5.12 billion (June 2008: €6.56 billion) comprised gross debt of €6.15 billion and cash and liquid investments of €1.03 billion. EBITDA/net interest cover remained comfortable at 6.3 times for the 12 months to June 2009.
Myles Lee, Chief Executive, added: “While overall Group profitability in the second half of 2009 will be lower than in 2008, we will benefit from the aggressive cost reduction measures undertaken in 2008 and to date in 2009 and from more moderate second-half energy-related input costs than in 2008.
“As a result, the overall rate of profit decline experienced in the first half is expected to improve in the seasonally more profitable second half. Against this backdrop, the Group continues to focus on commercial delivery and cash generation while ensuring, through ongoing cost reduction and operational initiatives, that our businesses are strongly positioned to respond to and take advantage of evolving market and trading circumstances."
www.crh.com
ENDS