CRH results broadly in line with last year

In its autumn trading statement, CRH announced that it expects the EBITDA to be broadly in line with last 2012 numbers, assuming normal weather patterns for the remainder of the year. Depreciation and amortisation charges as well as the net interest charge are forecast to be a little lower than in 2012, though the net debt is expected to be about EUR300m higher. Acquisitions and large capital investments amounted to around EUR660m, of which EUR492m were in heavy building materials, and included acquisitions in the developing economies of the Ukraine, India and China.

The European turnover eased by less than one per cent in the third quarter, reducing the reduction in the year to-date to seven per cent, after a 10 per cent reduction in the first half. Tthird quarter EBITDA improved slightly and the full year is expected to be down by over 20 per cent compared with the 43 per cent first half drop. The heavy building materials business showed little change in the third quarter, with an improvement in Switzerland and a stable performance in Poland and the Ukraine offsetting the difficult conditions in Spain, Ireland, the Benelux and Finland. After a five per cent improvement in the third quarter, Polish cement deliveries were down by 17 per cent in the year to date.

In the Ukraine, the commutative reduction was down to six per cent, following an eight per cent improvement in the third quarter. Swiss volumes were well ahead and the Spanish and Irish reductions were softened by exports to Great Britain. In building products, the EBITDA for the year is expected to be some 25 per cent lower, after a 40 per cent first half drop, with weaker Dutch concrete product sales being offset by stronger brick deliveries in Great Britain. On the distribution side, a weaker Dutch performance was partially offset by better conditions in Switzerland, Germany and France, but the full year EBITDA is still expected to be down by a quarter.

In the Americas, the third quarter turner improved by four per cent in US dollar terms and the EBITDA rose by more than 10 per cent. For the full year, CRH expects the EBITDA to increase by over five per cent. The American heavy materials business suffered from unfavourable weather until mid-August but then picked up, giving a six per cent increase in the EBITDA in the third quarter, having been down by a quarter in the first half. By the end of September the lost volume had been recovered in aggregates and ready-mixed concrete, but asphalt volumes were still eight per cent down.

With an improvement in housebuilding activity and the benefit of acquisitions, the building products operations are expected to show an EBITDA almost 30 per cent ahead for the year at in excess of EUR330m. Turnover in distribution increased by some seven per cent in the year to-date and the EBITDA could improve by up to 10 per cent in the full year.