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[March 2006]
CRH 2005 Results
For the year ended 31 December 2005, CRH PLC once again produced record sales and profits, a combination of strong underlying organic growth and good incremental contributions from acquisitions.
Total operating profit from European operations improved 7% to 676 million euro. In Europe Materials, operating profit improved 18% to 377 million euro reflecting a full-year share of profit from Secil (acquired June 2004) in Portugal and a strong underlying advance. Europe Products was impacted by generally subdued trading and a sharp decline in results from Insulation activities. Operating profit fell 8% to 176 million euro.Operating profit of 123 million euro from Europe Distribution was just ahead of 2004 against a background of subdued Dutch retail demand and poor weather early in the year. Total operating profit for the Americas operations increased by 22% to 716 million euro. Americas Materials achieved significant success in recovering higher energy costs with a 20% increase in operating profit to 328 million euro and a welcome improvement in margin.
With continuing strong US residential construction and ongoing recovery in non-residential construction, Americas Products delivered a 23% increase in operating profit to 308 million euro. Americas Distribution performed particularly strongly reporting a 27% increase in operating profit to 80 million euro, while operating profit margin improved to 7.0% (2004: 6.2%). Total dividend has been increased by 18.2% making 2005 the 22nd consecutive year of dividend increase. This follows a 17.4% increase in 2004. Total development activity amounted to 1.45 billion euro.
Liam O'Mahony, Chief Executive, said: "CRH continued to move forward on many fronts in 2005, once again producing new record sales and profits, with strong underlying profit growth and good contributions from acquisitions. The Group also delivered substantial development success, especially in the second half of the year.
"While as always risks remain, the current business outlook is on the whole positive and we enter 2006 with good momentum. A gradual pick-up in European economies seems broadly under way, which if maintained should bring good benefits. In the US, while housing may moderate at strong levels, non-residential construction should continue to recover and highway markets are underpinned by passage of the new Highway Bill. With a continuing focus on operational effectiveness and ongoing acquisition benefits, we look to 2006
with confidence."The results highlights for 2005, reported under International Financial Reporting Standards (IFRS), are set out below. The results reflect the proportionate consolidation of joint ventures in the Group's income statement,
cash flow statement and balance sheet while the Group's share of profit after tax of associates is included as a single line item in arriving at Group profit before tax.- Sales: 14.449 billion euro, up 13%
- Operating profit*: 1.392 billion euro, up 14%
- Profit before tax: 1.279 billion euro, up 16%
- Basic earnings per share: 186.7c, up 14%
- Cash earnings per share: 292.5c, up 12%* Before profit on disposal of fixed assets.
In its review of the Clay Products operations, CRH said that brick industry volumes in the UK continued to decline due to falls in both the new residential and RMI sectors while energy prices increased significantly, particularly towards the end of the year. Nevertheless, profits remained at similar levels to last year supported by strong pricing, improved factory and energy efficiencies and good cost control.
Overall profitability in the Mainland Europe activities in the Netherlands, Belgium, Germany and Poland remained stable despite higher energy costs.In the USA, clay brick producer Glen-Gery also advanced, although the impact of higher second-half natural gas costs somewhat eroded its strong first-half gains.
ENDS