Posted in | News

CRH Interim 2007 Trading Statement

CRH plc, the international building materials group, has issued a trading statement for the half-year ending 30 June 2007. The Interim results for the six months ending 30 June 2007 are due to be announced on 28 August 2007.

Highlights

  • With a particularly strong start in Europe significantly outweighing more challenging conditions in the Americas, CRH expects that profit before tax for the six months to 30 June will show a percentage increase of approximately 25% compared with the reported 2006 outcome of €526 million.

  • Profit on disposal of fixed assets was €17 million for the first half of 2006 and €40 million for the year. It is anticipated that profits on disposals for 2007 will be ahead of last year’s levels and that disposal of surplus properties will be an ongoing feature of the group’s activities.

  • First half development expenditure totalled almost €1 billion including the purchase of publicly-quoted Swiss builders merchant Getaz Romang and CRH ’s first acquisitions in China and Turkey.

  • EBITDA/net interest cover remains high at approximately 9 times for the twelve months to June 2007, well above the group’s stated comfort level of approximately 6 times. CRH is committed to optimising the use of its balance sheet while maintaining an investment grade credit rating.

  • In March 2007, the Board announced a full year 2006 dividend of 52.0 cent, up 33% with dividend cover of 4.3 times. This represented a first step in a phased reduction in dividend cover to a targeted 3.5 times for 2008. The 2007 interim dividend will show a significant increase on the 2006 level reflecting this dividend policy and broadly re-establishing the traditional split between interim and final dividends.

Notwithstanding the translation impact of a weaker US Dollar, with an ongoing focus on price and cost effectiveness, benefits from the record 2006 acquisition spend and a sustained development emphasis, CRH expects strong full year profit growth.

In a comment, CRH Chief Executive Liam O’Mahony said: “CRH has once again achieved a very positive trading performance and strong development success in the first half of 2007. We continue to have an active pipeline of acquisition opportunities and, with price and cost effectiveness and balance sheet optimisation as key priorities, we expect to deliver strongly in terms of both profit growth and development activity for 2007 as a whole”.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit
Azthena logo

AZoM.com powered by Azthena AI

Your AI Assistant finding answers from trusted AZoM content

Your AI Powered Scientific Assistant

Hi, I'm Azthena, you can trust me to find commercial scientific answers from AZoNetwork.com.

A few things you need to know before we start. Please read and accept to continue.

  • Use of “Azthena” is subject to the terms and conditions of use as set out by OpenAI.
  • Content provided on any AZoNetwork sites are subject to the site Terms & Conditions and Privacy Policy.
  • Large Language Models can make mistakes. Consider checking important information.

Great. Ask your question.

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.