CRH results reflect progress in the US

Company posts year-end results and announces asset swap with Cementos Portland Valderrivas SA

CRH plc, the Dublin-based international building materials manufacturers, have announced a 3% increase in consolidated net sales, to €18.7 billion, for the year ended 31 December 2012. Over the same period, EBITDA was down 1% to €1.64 billion, while operating profit was down 3% to €0.85 billion and pre-tax profit was down 5% to €0.67 billion.

In the Americas, sales increase by 15% and EBITDA rose by 12% to €0.85 billion in 2012, while in Europe sales were down by 7% and EBITDA fell by 12% to €0.79 billion.

With continuing focus on cost management, cost savings of €166 million were delivered last year and net debt was reduced by €0.5 billion to less than €3 billion. Further cost reductions of approximately €0.3 billion are planned for the three-year period to 2015.

Chief executive Myles Lee said: ‘The results for 2012 reflect progress from CRH’s Americas operations helped by a strong recovery in residential construction and improving overall economic activity in the US. In contrast, our European businesses had to contend with weakening consumer and investor confidence within the Eurozone.

‘Assuming no major financial or energy market dislocations, we expect that ongoing improvements in our businesses in the Americas combined with further profit improvement initiatives throughout our operations will outweigh continuing trading pressures in our European segments, enabling the Group to achieve progress in 2013.’

Meanwhile, CRH plc and Cementos Portland Valderrivas SA (CPV) have reached agreement on an asset swap in relation to certain Spanish assets.

CRH will transfer their 26% stake in Corporacion Uniland SA to CPV, and in return CPV will transfer their 99% stake in Cementos Lemona SA, an integrated cement, ready-mixed concrete and aggregates business near Bilbao in the Basque region of northern Spain, to CRH.

As part of the transaction, CRH and CPV have agreed to terminate all legal disputes with each other.