| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Mar 3, 2010 - 5:35:28 AM


CRH reports 53% dip in 2009 profit before tax and impairment charges to €773m
By Finfacts Team
Mar 2, 2010 - 7:08:37 AM

Email this article
 Printer friendly page

CRH, the global building materials group, was formed through a merger in 1970 of two leading Irish public companies, Cement Limited (established in 1936) and Roadstone Limited (1949). CRH accounts for more than one third of market capitalisation on the Irish Stock Exchange and up to 90% of CRH's shares are held outside Ireland. About 2,000 of CRH's payroll of more than 94,000, are located in Ireland.

CRH plc, which is headquartered in Dublin, Ireland and is the second-biggest building materials supplier in the world, and the market leader in the United States, reported today that sales revenue fell 17% to €17.4bn in 2009, a decline of 19% on a like-for-like basis excluding acquisitions and translation effects. Profit before tax and impairment charges amounted to €773m  --  a fall of 53% compared with 2008.

CRH said after impairment charges, profit before tax of €732m was 55% lower than 2008. Earnings per share fell 58% to 88.3c (2008: 210.2c adjusted for the March 2009 Rights Issue). EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) amounted to €1.8bn after restructuring charges of €205 million. Depreciation and amortisation costs amounted to €848m (2008: €824m) and include impairment charges of €41m (2008: €14m). Operating profit fell 48% to €955m; excluding restructuring and impairment costs; operating profit was down 37%.

The group said significant working capital reduction together with capital expenditure restraint contributed to operating cash flow of €1.2bn, double the 2008 level of €0.6bn. Net debt reduced to €3.7bn (2008: €6.1bn). CRH said with year-end 2009 net debt to EBITDA of 2.1 times and 2009 EBITDA/net interest of 6.1 times, CRH has one of the most flexible balance sheets in its sector.

Myles Lee, Chief Executive, said today: "Residential and non-residential markets declined during 2009 in both Europe and the US, with government-funded infrastructure investment only partially compensating. We expect a difficult demand backdrop through much of 2010 with continuing declines in non-residential activity across our markets not helped by a poor start to the year as a result of prolonged severe weather in Europe and North America during January and February.

The significant adjustments to our cost base achieved over the past three years and our ongoing restructuring measures, together with our substantial balance sheet capacity, have strengthened the Group operationally and position CRH well to respond to upside demand developments and to avail of value-enhancing acquisition opportunities as these arise across our markets."

The board is recommending a final dividend of 44.0c cent per share, broadly in line with the adjusted final dividend of 43.7c for 2008. This gives a total dividend for the year of 62.5c, slightly ahead of the full-year 2008 dividend of 62.2c, with 2009 representing CRH’s 26th consecutive year of dividend growth.

Results detail

Goodbody analyst, Robert Eason, commented: As expected, outlook a touch more cautious - - "CRH has reported PBT (before impairment) of €772m, which is ahead of guidance of 'approximately €0.75 billion' and compares favourably to our forecast of €751m. The headline PBT is lower, at €732, due to an impairment charge of €41m. Excluding this charge, exceptionals of €205m and an adverse currency impact of €44m, the underlying decline in PBT is 38% (versus -69% in H1). At an adjusted EPS level, the outturn was 92.3c versus forecast of 91c, with the main variances being lower interest and tax charges, offsetting weaker outturns for European Materials and US Products.

Despite the significant decline in earnings, cashflow generation before acquisitions, equity issuance, currency effects and dividends was still significant, at €1.7bn, up from circa €1,1bn last year. This reflects a robust working capital performance and capex coming in below depreciation. As a result, net debt was reduced by €2.4bn to €3.7bn, which is ahead of our forecasts and guidance. As expected, the outlook is relatively cautious, with management expecting a difficult market backdrop for 2010, especially for non-residential markets in both Europe and the US. This has not been helped by a weather affected start to the year. In Europe, Poland is anticipated to be an area of strength, particularly given strong infrastructure.

In terms of the US, the timing of a residential recovery is still uncertain, while it flags the Federal highway programme has hit a bit of a speed bump, although a resolution is expected over the next days. Overall, we would interpret the outlook as being slightly more cautious than before."

Related Articles
Related Articles


© Copyright 2009 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%