CRH revenue drops by 3pc

Building materials group CRH has reported a 3pc fall in revenue for the six months to the end of June, and said it expects challenging trading conditions in Europe for the rest of 2013.

CRH posted a pre-tax loss of E71m for the half year compared to a profit of E102m the same time last year. Revenues were down 3pc to just over E8 billion. The company has decided to maintain its interim dividend at last year’s level of 18.5 cent per share.

Key Points

• Sales revenue down 3%; this reflects a 6% reduction on a like-for-like basis, comprising a 7% fall in the four months to April moderating to a 3% decline in May/June.
• Earnings before interest, tax, depreciation, amortisation and impairment charges (EBITDA) amounted to €0.4 billion, in line with AGM guidance. Excluding pension/CO2 gains, EBITDA was 18% below first half 2012.
• Dividend per share maintained at 18.5c.
• Incremental cost savings of €111 million in 2013; accelerating initiatives in Europe due to weak markets.
• Continued focus on working capital management and capital expenditure.
• First half acquisitions/investments of €470 million; cumulative €0.8 billion in last 12 months.
• Proceeds of €202 million from disposals.
• Net debt of €4.2 billion, €0.4 billion higher than June 2012.