|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). About 90% of CRH's shares are held outside Ireland. CRH's has a payroll of 75,000 and less than 1,500 are located in Ireland. It moved its primary stock exchange listing to London in 2011 and is a FTSE 100 company.|
CRH plc, Europe's biggest
building materials group, headquartered in Dublin and with a primary
listing in London, said today that 2014 will be year of profit growth after
reporting a 2013 loss.
Following a first half
that was severely impacted by bad weather, CRH said revenue rose 2% in the
second half of the year, with a smaller fall in Europe offset by a 5% rise in
the United States.
The group reported pre-tax losses of €215m for
the year to the end of December compared to a pre-tax profit of €646m in 2012.
Revenues fell to €18.03bn from €18.08bn following a 6% dip in the first half of
Operating profits slid by 10% to €750m from €833m while cost savings of €195m
The board is recommending a final dividend of 44 cent per share, in line with
2012. This amounts to a total dividend for the year of 62.5 cent, which is
unchanged from 2012.
Robert Eason of
Goodbody comments - - "CRH has reported FY13 EBITDA of €1,475m (-6% yoy), which is 1% ahead of
Goodbody’s forecast of €1,460m. This compares to management’s guidance of c. €1,440m and
implies 4% growth in Q4 versus +3% in Q3. The key variance is a better than expected
performance in European Distribution (EBITDA 13% ahead of Goodbody) which a offset slight
miss (-3%) in US Products. At the adjusted eps level CRH has delivered eps of 65c in line
Lfl sales in Europe have improved to -1% yoy in H213 compared to -10%
reported in H113, highlighting the stabilisation in European construction markets. The
Distribution business was the stand out performer in Europe coming in 13% ahead of our forecasts and
management guidance driven by a 50bps beat on margins. The US recovery continues with lfl
sales +5% yoy versus -1% in H113. Divisional performances were in line with both forecasts
and guidance given by management in November.
CRH has announced that 10% of the net asset base has been identified for
orderly disposal, with another 20% of the net asset base to undergo further review for potential
restructuring. This has resulted in an impairment charge of c. €750m of which one third will be
attributed to the European Products division, which should come as no surprise.
The new CEO is relatively upbeat on the outlook for 2014, stating that 2013
is expected to be the trough in earnings for CRH with profit growth expected in 2014 as H213
activity levels were encouraging and while early in the season, trading in 2014 is ahead yoy.
This is a solid set of results. CRH’s exposure to the late cycle recovery in
the US, stabilising markets in Europe and the upside potential from the asset review process all underpin our view that the company can continue to outperform peers."
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