CRH reports double digit declines
First publishedon www.AggBusiness.com
Ireland-based CRH has reported an 8% fall in revenues to €520million for the first six months of the year, compared to the same period last year. Nonetheless, EBITDA for the period is down 20% to €520million, while operating profit fell 51% to €118million, compared to 2009. The company has said that the performance is in line with the interim statement issued in July.
CRH chief executive Myles Lee said, “"Since our 7 July update, European economic indicators have been more encouraging although uncertainties remain; however, concerns relating to the recovery in the US have increased with a continuing flow of disappointing economic data.
“Over this period, which represents the effective start of its main earnings season, our Americas Materials business has experienced weaker than expected volumes and more competitive pricing due to lower than anticipated levels of commercial construction and pull-backs in state and municipally funded projects. As a result second half US$ profitability in Americas Materials will be lower than last year compared with our previous estimate of an improved second half outturn.
“This combined with less favourable full year translation effects due to the strengthening of the euro indicates that our earlier expectation that overall group EBITDA for the second half of 2010 would exceed 2009’s level is unlikely to be achieved. Arising from this we currently expect that full year group EBITDA will show a decline of around 10% compared with the 2009 level of €1.8billion.
“With a robust balance sheet and an anticipated strong second-half cash inflow the group is well positioned to respond to the current challenges and, against a tougher than anticipated second-half backdrop, is continuing to focus on cost reduction, cash generation and the identification and completion of suitable development opportunities.”
The company has said that it is focused on expansion with €159million spent in the first six months on acquisitions and investments. The company has said that despite the challenging economic conditions, it will continue to look at acquisition opportunities.