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[March 2008]
15 Years of Straight P/E Growth for CRH
CRH reports that it delivered another very strong performance in 2007 with full year profit before tax of €1.904 billion, a 19% increase on 2006 (€1.602 billion). Earnings per share increased 17% to 262.7c (2006: 224.3c). This represents CRH’s 15th consecutive year of profit and earnings growth.
Operating profit in the Europe businesses grew €292 million to €1.106 billion, up 36%. Organic growth, which accounted for €178 million or 61% of the increase, was more than double 2006 organic growth of €81 million.
Operating profit for the Americas operations increased by €27 million to €980 million, up 3%. Robust organic performances in the Materials and Products activities plus an excellent contribution from APAC were offset by lower profits in Distribution and a €78 million impact due to a weaker US$.
Overall operating profit margin increased to 9.9% (2006: 9.4%) and profit on disposal of fixed assets at €57 million was ahead of 2006 (€40 million). It is anticipated that a strong level of profit on disposals will be an ongoing feature of the group’s activities.
Expenditure on acquisitions and investments during 2007 totalled a record €2.2 billion. Nevertheless, EBITDA/net interest cover remained high at 9.4 times for the year (2006: 9.7 times), well above the group’s comfort level of approximately 6 times.
The proposed 31% total dividend increase for 2007 makes this the 24th consecutive year of dividend growth and follows a 33% increase in 2006 reflecting the phased adjustment in dividend cover from 4.8 times in 2005 to a target of 3.5 times for 2008.
In January, CRH announced a share repurchase programme of up to 5% of the 547 million shares then in issue. A total of approximately 6 million shares have been repurchased during January and February 2008 at an average price of €25 per share.
Liam O’Mahony, Chief Executive, said: “CRH’s geographic, sectoral and product balance continued to deliver in 2007 both in terms of overall trading performance and acquisition activity. While developments over recent months have added to economic uncertainties, CRH is well positioned across its operations to deal with the evolving market circumstances.
“Following record levels of acquisition activity in 2006 and 2007, and with an ongoing strong pipeline of opportunities, we are continuing to develop our Western European and North American businesses while building on our growing platforms in emerging markets. With a relentless emphasis on operational efficiency, and targeted cost reduction measures, we remain focused on our twin goals - performance and growth - and on delivering a sixteenth consecutive year of profit and earnings growth in 2008.”
www.crh.com
ENDS