Another year of profit growth for CRH
IN their full-year 2007 trading update statement, issued ahead of the Group’s preliminary results announcement scheduled for 4 March 2008, CRH plc say they expect 2007 profit before tax to be close to €1.9 billion, giving a high-teen percentage increase on 2006 (€1.6 billion) and a fifteenth consecutive year of profit earnings and growth.
In Europe, with a continuing strong trading performance from Materials operations and good full-year profit advances in Products and Distribution operations, CRH say they anticipate a 2007 operating profit of €1.1 billion (2006: €0.814 billion), while the 2007 operating profit from the Group’s Americas activities is expected to be around €0.985 billion (2006: €0.953).
CRH have also recently announced a further 37 acquisitions totalling €693 million undertaken during the second half of 2007, bringing the Group’s combined second-half acquisition spend to €1.2 billion. This, together with a first-half development spend of almost €1.0 billion, results in a record-breaking full-year acquisition spend of €2.2 billion on 78 acquisitions, spread evenly across CRH’s Europe and Americas operations.
Commenting on these developments, CRH chief executive Liam O’Mahoney said: ‘Development activity over the course of 2007 shows yet again the Group’s ability to deliver at pace, a broad range of strong, value-adding transactions. Total acquisition spend of €2.2 billion surpasses 2006’s record activity level, and the transactions completed will contribute greatly to the objective of delivering acquisitive growth and increasing shareholder value.’
CRH say current forecasts for 2008 point to continuing economic growth in the company’s main markets, although this is expected to be at a slower pace than in 2007. Nevertheless, the company plans to maintain its emphasis on margin development through price and cost-effectiveness, focusing on the twin goals of performance and growth, as well as on delivering a sixteenth consecutive year of profit and earnings growth.
