CRH (CRH) admitted last November that full-year profits would be lower, following weak third-quarter like-for-like sales. But while European sales fell 6 per cent, US sales actually grew 3 per cent, thanks to a strong recovery in residential construction. And management reckons that a revival in the US - together with ongoing cost savings - will more than offset weakness in European markets.
The US materials operation boosted operating profit by 7 per cent to €282m (£247m), helped by 16 acquisitions costing €230m, while a bounce in home construction saw profits in the products division more than double to €86m. Moreover, the distribution side - which trades as Allied Building Products - grew operating profit by 31 per cent to €59m.
However, trading in Europe was blighted by economic weakness and grim weather, with impairment charges and restructuring costs draining €67m from the three divisions. The products division took the brunt of these - some €51m - which cut operating profits there by three-quarters to €18m.
Broker Davy currently expects adjusted pre-tax profit of €717.7m for 2013, giving EPS of 80.8¢ - but expects to upgrade these numbers by around 5 per cent.
| CRH (CRH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,410p | MARKET VALUE: | £10.24bn | |
| TOUCH: | 1,409p-1,411p | 12-MONTH HIGH: | 1,438p | LOW: 1,052p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 1,450¢* | NET DEBT: | 28% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 20.9 | 1.63 | 210 | 62.2 |
| 2009 | 17.4 | 0.73 | 88.0 | 62.5 |
| 2010 | 17.2 | 0.53 | 61.3 | 62.5 |
| 2011 | 18.1 | 0.71 | 82.6 | 62.5 |
| 2012 | 18.7 | 0.67 | 76.5 | 62.5 |
| % change | +3 | -5 | -7 | - |
Ex-div: 6 Mar Payment: 13 May *Includes intangible assets of €4.4bn, or 612¢ a share £1=€1.14 | ||||
