| 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.

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: Nov 10, 2010 - 6:37:34 AM


CRH says rate of decline in group sales has moderated; Increases stake in German merchant business to 98%
By Finfacts Team
Nov 9, 2010 - 6:23:55 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. CRH's payroll of about 80,000 in Dec 2009, fell from 94,000 in 2008. Less than 2,000 are located in Ireland.

CRH plc, which is headquartered in Dublin, Ireland, operates in 35 countries; is the second-biggest building materials supplier in the world and the market leader in the United States, today said that the rate of decline in group sales has moderated during recent months. It also announced that it has increased its stake in German merchant business to 98%.

The building materials giant said that the rate of decline in group sales has moderated during recent months, with like-for-like third quarter sales down 4% compared with last year. This follows the 10% like-for-like fall recorded for the first half of the year and brings the cumulative rate of decline in underlying sales to 8% for the nine months to end-September.

The trend for sales, combined with continuing benefits from our ongoing cost reduction measures has resulted, in an easing in the rate of profit decline in the third quarter compared to the first half of the year. Group earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter of 2010 amounted to €0.7bn (2009: €0.75bn).  Cumulative EBITDA of €1.2bn for the nine months to the end of September compares with €1.4bn for the corresponding period of 2009.

CRH said in an Interim Management Statement that it continues to generate strong operating cash flows, with a traditional third quarter inflow and positive exchange translation effects resulting in a €0.8bn reduction in net debt from €4.8bn at June 30to €4bn at September 30, 2010. This figure comprised gross debt of €5.4bn and cash and liquid investments of €1.4bn.

CRH expects the rate of decline in like-for-like sales to continue to moderate in the final quarter and, assuming normal weather patterns for the remainder of the year. It anticipates EBITDA of approximately €0.4bn for the final quarter of 2010, broadly in line with the same period last year which was impacted by significant restructuring costs. Against this backdrop, CRH expects to report full-year EBITDA of approximately €1.6bn (2009: €1.8bn) for 2010 in line with the indications provided in its Interim Report. This is based on an expected average US$ exchange rate of 1.33* versus the euro (2009: 1.3948), and is stated after estimated charges of approximately €100m associated with the implementation of cost reduction plans (higher than the previous estimate of €58m, reflecting the cost of further measures initiated since mid-year).

Germany

CRH says acquired its initial 48% joint venture share in Bauking, the leading builders merchant and DIY operator in northern Germany, in December 2005. The business, which has grown organically and through acquisitions, now has a total of 128 branches and generated EBITDA of €35m on sales of €747m in 2009.

CRH said the purchase of an additional 50% of Bauking, which is expected to be completed before year-end, will greatly strengthen CRH's existing position in Germany, the largest construction market in Europe, providing an excellent platform for further growth and expanding the Group's exposure to the important repair, maintenance and improvement (RMI) construction sector.

Myles Lee, Chief Executive of CRH, commented: "We are delighted to take control of our successful Bauking joint venture in Germany. This transaction will bring our total German distribution sales to €0.85 billion in a fragmented market with significant expansion potential. The buyout is very much in keeping with our European Distribution strategy of investing in profitable businesses and attractive regions and strengthens our existing position as the third largest Building Materials distributor in Western Europe."

*Forecast average US$ exchange rate based on year to date US$/euro average of 1.32 and a projected rate of 1.39 for the remainder of 2010.

Related Articles
Related Articles


© Copyright 2010 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%