CRH operating profit grows by 39% to Euro1.28bn in 2015

Bymc2008

Updated Fri, 04 Mar 2016 09:32:21 GMT

Ireland: CRH’s operating profit has grown by 39% year-on-year to Euro1.28bn in 2015 from Euro917m in 2014. Its sales revenue grew by 25% to Euro23.3bn from Euro18.9bn. Favourable weather, encouraging markets and currency benefits were all attributed to the positive result.

“As a result of good performance from our heritage businesses and contributions from acquisitions, 2015 was a year of significant profit growth for CRH. Strong cash generation resulted in our year-end debt metrics being ahead of target, and we are well on track to restoring these metrics to normalised levels during 2016. Recently there has been some uncertainty about the pace of global growth. Our focus remains on consolidating and building upon the gains made in 2015. Against this backdrop, we believe 2016 will be a year of continued growth for the Group,” said Albert Manifold, chief executive of CRH.

The group’s Europe Heavyside division, which includes cement production, reported a fall of 8% year-on-year to Euro3.61bn in 2015 from Euro3.93bn in 2014. Operating profit fell by 11% to Euro135m from Euro151m. Challenging business conditions were noted in Switzerland, France, Germany and Finland.

For CRH’s acquisitions from Lafarge and Holcim, the group reported that trading results were above expectations. Good performances were noted in the UK, Europe and the Philippines. However, market challenges were encountered in France, Germany and Brazil. CRH completed its purchase of Lafarge and Holcim’s European and American assets on 31 July 2015. It then completed its purchased of assets in the Philippines on 15 September 2015.

In 2016 CRH expects continued growth in the US, growth in Asia, buoyed by the Philippines and growth in parts of Europe including the UK, Ireland and the Netherlands. More difficult market conditions are anticipated in Switzerland, Belgium, Germany and France.