Final Results - Pre-tax Profit Up 40%

CRH PLC 29 February 2000 Results for the year ended 31st December, 1999 Euro Sales* 6,734 m up 29% Profit before tax - excluding exceptional items 571 m up 40% - including exceptional items 635 m up 55% Basic earnings per share (after goodwill amortisation) - excluding exceptional items 106.51c up 35% - including exceptional items 116.38c up 47% Cash earnings per share 177.00c up 45% Dividend per share 20.00c up 17% Trading profit by destination* Euro m % (excluding exceptional items) Republic of Ireland 114.7 17 up 12% Britain and Northern Ireland 59.6 9 up 62% Mainland Europe 104.0 16 up 58% The Americas 385.1 58 up 56% ------ 663.4 100 up 47% ====== Dividend cover (excluding exceptional items) 5.3 times (1998: 4.6 times) Interest cover* (excluding exceptional items) - EBIT basis 7.2 times (1998: 10.5 times) - EBITDA basis 10.1 times (1998: 14.4 times) * Sales, trading profit and interest cover include share of joint ventures. Liam O'Mahony, Chief Executive, said today: 'At the core of CRH's consistent strategy are its twin imperatives of performance and growth and this strategy in action is reflected in our strong 1999 results and record development spend. We are confident that 2000 will be another year of progress.' RESULTS The results highlights are: Turnover was Euro 6,734 million, an increase of 29 per cent on 1998. Trading profit excluding exceptional items was Euro 663.4 million, an increase of Euro 212 million or 47 per cent. Profit before tax excluding exceptional items advanced to Euro 571 million, an increase of 40 per cent. The exceptional items amount to a net Euro 64.2 million and comprise a profit on disposal of Keyline Builders Merchants partly offset by a write-down in the carrying value of fixed assets at Premier Periclase. Profit before tax including exceptional items was Euro 635 million, an increase of 55 per cent. Basic earnings per share excluding exceptional items amounted to 106.51 cents, an increase of 35 per cent. Cash earnings per share was 177.0 cents, an increase of 45 per cent. Aided by strong markets in Ireland and North America, improving markets in Britain and Mainland Europe and with the benefits of a record Euro 1.5 billion development spend, we achieved substantial growth in sales and profitability pushing the Group to new record levels. Exchange effects in 1999 arising from the strengthening of Sterling and US Dollar versus the Euro had a positive Euro 13 million impact on reported profit before tax. The Group profit and loss account on page nine separately discloses the impact of 1999 acquisitions as well as results from discontinued operations. The latter category includes results for Keyline, disposal of which was completed in early June; for Caima Ceramica which was acquired as part of the Ibstock transaction in 1998 and sold in March 1999, and for the Farrans Group plant and engineering division in Northern Ireland which was sold in October. Dividends The Board is recommending a final net dividend of 14.10 cents net per share, an increase of 17 per cent on the 1998 second interim dividend of 12.06 cents paid in lieu of a final dividend. This makes a total net dividend for the year of 20.00 cents (1998:17.14 cents), an increase of 17 per cent. It is proposed to pay the final dividend on 8th May, 2000 to shareholders registered at close of business on 10th March, 2000. A scrip dividend alternative is being offered to shareholders. Development The major strategic moves of 1999 were the acquisitions of Finnsementti/Rudus and Thompson-McCully both completed in the month of July and the disposal of Keyline in early June. The Finnsementti/Rudus deal expands our cement capacity in Europe, complements and strengthens our Polish readymixed concrete and aggregates operations and offers platforms for further growth in the Baltic region. The purchase of Thompson-McCully, the market leader in asphalt in Michigan, provides an entry into the attractive US midwest materials markets. Republic of Ireland We continued our programme to improve efficiency and increase production capacity with a total investment of Euro 65 million in 1999. Roadstone Dublin replaced existing block manufacturing capacity with a high output plant, extended its material reserves in a number of strategic locations and increased production capacity in concrete and aggregate production. Roadstone Provinces opened a new concrete paver plant in Limerick, blacktop plants at Bunratty and Slane and also upgraded aggregate output in several key locations. The rooftile product range was extended with the installation of a new production line in Dublin and a new facility which is now under construction in Cork. Concrete pipe output will increase following commissioning this year of a new factory by John A.Wood. Clogrennane Lime commissioned a new 300 tonnes per day burnt lime plant at its Carlow facility, more than doubling its capacity. Irish Cement obtained planning permission for an extension to its Limerick plant and is completing construction of a deepwater import terminal in Dublin to respond to any further growth in the cement market. Britain and Northern Ireland In September, Ibstock acquired a modern brick factory at Ellistown in Leicestershire, which has performed well since acquisition. At year end an older factory at Himley was closed, contributing to the industry's need to bring capacity more in line with market demand. In Northern Ireland, we acquired Ballymena Construction Limited, a rooftile and concrete pipe business, and disposed of our plant sales and engineering company in a management buyout. Activities are now focused on materials and construction. Mainland Europe In our Dutch distribution businesses five DIY stores were completely refurbished and a store at Waalwijk was acquired expanding our retail chain. Kelders roofing added a branch in Utrecht with the acquisition of Fielmich Dakmaterialen in September. In June, we acquired Kooy Bilthoven, the leading brick merchant in the Netherlands. Heras established a sales depot in Warsaw. Also in Poland, the successful construction and commissioning of a new 'state of the art' 8,000 tonnes per day kiln at the Ozarow cement plant on time and within budget was an outstanding achievement for our multinational project team. Integration of the Rudus operations in Poland and two further small acquisitions now gives CRH 3.5 million tonnes of aggregate production, a developing concrete products network and the number one position in the concrete market in Warsaw. The Americas The Materials Group acquired 14 new companies, including Thompson-McCully. In the northeast we added Dell and Millington in New Jersey, Poughkeepsie Asphalt in Upstate New York and Slusser Brothers in Pennsylvania. In the west three add-on acquisitions, now merged as Waycor Materials, were completed in Albuquerque, New Mexico and we also added Keigley Quarry in Utah, B&B Excavating in Colorado, Cundy Asphalt in Wyoming and Idaho Concrete and Hunziker Construction in the Idaho market. The acquisition of South Kent Sand & Gravel saw the first bolt-on acquisition for Thompson-McCully. The Architectural Products Group (APG) acquired Young Block of Arizona, Eagle Concrete Products of Texas and 4D of Michigan in addition to three concrete rooftile plants located in Arizona, California and Florida. A major greenfield development programme to increase production of lawn, garden and paving products saw the commissioning of a new paver plant in Waco Texas with three others under construction in Pennsylvania, Tennessee and California. Sakrete PNW, which was acquired as the year ended, strengthened APG's strong regional position in dry mixes. The Glass Group acquired Free State Glass, located near Washington DC and two specialty glass businesses in South Carolina and California. Major investments in plant and equipment were completed by the Precast Group in the states of Georgia, Tennessee, Texas and Washington and the operations of Cloud Concrete in Tennessee and Kentucky were acquired providing a strong position in this region of the US. Allied Building Products, of the Distribution Group, completed its computer conversion. In South America, we purchased a 50% interest in Vidrios Dell Orto, a leading glass fabricator in Chile. Finance The strong cash generation characteristics of the Group combined with Euro 331 million disposal proceeds, mainly from the sale of Keyline, enabled us to spend a total of Euro 1,781 million during 1999 on acquisitions and capital projects with only a Euro 940 million increase in net debt. Our interest and dividend cover and balance sheet remain healthy and we enter 2000 with a balanced mix of fixed and floating rate debt and currency net worth. These factors, combined with the Group's continuing strong cash flow and diversified earnings base underpin the continuation of our development strategy. Operations review Republic of Ireland Construction output in Ireland set another record with volume growth exceeding 10%. House construction increased overall by 16% but limited availability of serviced land and planning delays constrained output growth in the Dublin market to only 2%. Road construction showed a similar lack of balance as major planned projects in Dublin were delayed. Despite the high level of activity price improvements again failed to match inflation in a well-supplied and competitive market. Profits were up but margins remained largely the same, constrained by cost increases that were not fully recovered. Market conditions world-wide for refractory materials remained extremely competitive and as a result Premier Periclase had a difficult year. Britain and Northern Ireland In a subdued UK brick market where deliveries equalled the level of the previous year, Ibstock Building Products focussed on reducing manufacturing costs and streamlining business processes. Ibstock's corporate head office was closed at the end of May. Ibstock had a satisfactory first year and has integrated well into the CRH Group. Forticrete showed further improvement and early synergies have already been realised from the integration of Ibstock's stone walling and masonry business. Profits at Combat Polystyrene suffered from the closure costs of a non-core lossmaking facility at Livingstone in Scotland. In Northern Ireland, Farrans Group increased product sales by 10% in a difficult pricing environment and profits improved. These results include trading at Keyline Builders Merchants for the months January to May as well as an exceptional profit before tax of Euro 79.5 million arising from its disposal in early June. Mainland Europe In western Europe market conditions were neutral to positive, generally showing an improvement on 1998 with more favourable weather conditions. Our Distribution businesses in the Netherlands scored good advances with profits ahead. DIY superstores continued to perform to best expectations and our specialist merchants, Garfield Aluminium, Kelders roofing and Van Neerbos heavyside also reported improved results. Bouwmaat continued to make progress while the Syntec ironmongery business disappointed. In France, the co-operation between Materiaux Service and Raboni developed most satisfactorily and, aided by the growing French economy, we scored double digit sales and profit gains. Results at MaxMat, our joint venture on the Iberian Peninsula, were adversely impacted by heavy opening costs for new stores. Both partners are working actively to improve results in what is a promising market. Our Concrete Products Group struggled to match the excellent performance of the previous year. Despite strong demand there is too much capacity on the Dutch market and both Struyk Verwo in paving and Dycore Verwo in flooring encountered intense price competition. In Belgium Marlux showed a good profit improvement while Remacle and Max Pels, the precast concrete companies acquired in 1998, had a good first full year. In France, Prefaest, also acquired in 1998, had a difficult year and incurred losses. In the Netherlands the Clay Products Group encountered increased price competition. While demand is good, plant upgrades in the industry have increased overall capacity and combined with a reduction in exports to Germany this has resulted in a difficult marketplace. Profits were lower than in 1998. In Germany, AKA Ziegelwerke is still operating below capacity although intense price competition abated. Production capacity was rationalised and one line was closed permanently. Profits improved in a depressed market. In the Building Products Group Heras Fencing enjoyed a better year with significantly higher profits. Rooflights and Ventilation had a good year in the Benelux offset by difficulties in Germany where performance reflected a weak market. Vebofoam, our insulation company in Belgium, reported improved results. In the Europe Materials Division, volume and price improvements in Beton Catalan in Spain added 12% to sales revenue delivering better margins and financial returns. In Finland, results for Finnsementti/Rudus for the five months post acquisition were somewhat better than expectations. In Poland, despite a slowdown in GDP growth, the construction sector advanced by more than 10% driven mainly by industrial, civil engineering and retail and office construction. Residential construction continued to disappoint due to a lack of affordable mortgage finance. With cement consumption continuing its steady growth at about 7%, Cementownia Ozarow and Rejowiec benefited from additional volumes and better prices. The Americas 1999 was another strong year for the US economy giving an unparalleled period of growth and prosperity. A combination of historically low interest rates, further increases in equity markets and buoyant consumer confidence provided a backdrop for a healthy construction market, with output growing 2%. In South America political uncertainty and the devaluation in Brazil impacted negatively on the Argentine economy. The Materials Group continued its rapid growth in 1999 with another year of record results and development. All of the group's major markets grew as non-residential construction remained buoyant and the Transportation Equity Act for the 21st Century (TEA 21) positively impacted highway sector volumes in the second half. However, variable implementation of TEA 21 funding as the design and planning process got underway, some reduction of state funding in our major New York market and the diversion of maintenance monies to large projects in several states muted the positive effects. Dramatically higher crude oil prices led to increases in bitumen, a major component of asphalt, and other energy costs which were not fully recoverable in the period. The weather was reasonable, but we did not benefit to the same extent as in 1998 from the exceptional mild late autumn and early winter weather. Materials Northeast: Pike Industries had a solid year with record volumes and improved margins. Vermont, New Hampshire and Maine operations enjoyed strong highway markets but Massachusetts disappointed due to the diversion of maintenance monies into Boston's ongoing 'Big Dig' project. Tilcon Connecticut completed another excellent year while Tilcon New York, which operates in New York City, New York State and New Jersey benefited from robust construction markets in New York City. Newly acquired Dell and Millington in New Jersey completed the year in line with expectations. Performance in Upstate New York improved despite stagnant markets while the mid-Atlantic group in Pennsylvania and Delaware had a record year complemented by the acquisition of Slusser Brothers of Pennsylvania in July. Materials West: Staker Paving and the Jack B. Parson companies performed soundly in competitive Utah, Idaho and Wyoming markets. Our operations in the southwest (Colorado and New Mexico) had a mixed year with a strong performance from United Companies and B&B Excavating offset by lower volumes and higher costs in the Four Corners operations in southern Colorado and northern New Mexico. The newly acquired Albuquerque operations had a satisfactory start in the group. CPM Development in eastern Washington and Northern Idaho had another excellent year enjoying strong markets in highways and private construction. Segale, in Seattle, Washington, had a difficult year with few new major state projects being let. Hills Materials Company in South Dakota and the recently acquired Cundy Asphalt Paving in eastern Wyoming had an outstanding year. Materials Midwest: Results from Thompson-McCully, acquired early July, were broadly in line with expectations and integration is going well. We see excellent scope for further profitable growth through our traditional programme of bolt-on deals in this area of the country. The Architectural Products Group had another strong performance in 1999 with significant growth in sales and profits. Growth in the Oldcastle(TM) DIY lawn and garden business and in the new Belgard(TM) professional hardscapes programme were strong contributors to APG's record year. Groupe Permacon in Canada had an exceptional year while Superlite in Arizona, Adams Products and Betco in the east and Big River, the group's lightweight aggregates operation, were all ahead of expectations. Concrete Designs in Arizona, Bosse in Georgia and Miller Materials in Missouri were also strongly ahead. In Indiana, Schuster consolidated its 1998 recovery with a good outcome. Glen-Gery, acquired at the end of 1998 as part of the Ibstock acquisition, enjoyed strong residential and commercial demand for its products and the outcome for the year was well ahead of expectations and 1998. The Glass Group performed well in 1999 with solid advances in sales and profitability. Local, customer-driven management teams delivered exceptional service to their markets and exceeded revenue expectations. Strong performances were achieved in every region of the US and results improved in Canada. The Precast Group had another excellent year with all-time highs in both sales and operating profits and further progress with its phased programme of upgrading facilities. The northeast continued to improve with a good increase at Rotondo and a strong recovery at Spancrete. Operations in the southeast also made strides while operations in the west and California in particular continued to improve on 1998 performances. 1999 was an important transition year for the Distribution Group. Allied achieved its margin recovery target and completed phase one of its computer conversion on schedule and at expected cost. Allied now has a sophisticated infrastructure designed to achieve improved operating efficiency and margin enhancement, while providing significant capacity to accommodate further growth. Results improved on a difficult 1998. South America: Canteras Cerro Negro in Argentina performed well and profits were ahead of the previous year. During 1999, the Group purchased 50% of Vidrios Dell Orto, the leading glass fabricator in Chile. The operating results were in line with expectations. Outlook 2000 2000 promises to be another year of strong economic performance in Ireland fuelling more demand for our products. The infrastructure deficit is finally getting attention and all companies are well positioned to benefit from the National Development Plan. Growth in Ireland should settle down to lower but still strong levels. In Europe forecasts for the construction industry in our markets are positive. The UK is picking up with signs of further growth in 2000, against a background of overcapacity in clay products, our major market there. Markets in the Benelux are also positive. A major business challenge is to cope with overcapacity in clay and concrete products, particularly in the Netherlands and Germany, where the recovery is slow to materialise. Spain forecasts growth in construction although some signs of higher inflation are a cause for concern. Finland is also expecting an increase in output, which should underpin the steady development of our cement, concrete and aggregate businesses there. In Poland good GDP growth is forecast and construction output is expected to grow in line with this. The US economy continues its ninth straight year of economic growth. However rising interest rates sound a cautionary note. Currently forecasts are for modest growth in the overall economy and in construction in 2000. Bitumen costs are still rising and could impact, though we expect to mitigate this through effective purchasing and price increases as appropriate. Given our geographic spread, end-use balance, TEA 21 driven growth and barring any major economic setback, we look to continue the good progress of recent years. We will continue to fine-tune the integration of the major 1999 acquisitions and on the development front we will continue with our strong programme across all regions. Since year end we acquired the stock of The Shelly Company, a major materials business in Ohio and West Virginia for US$362 million. We are confident that 2000 will be another year of progress. Financial results and supplementary information =============================================== Group profit and loss account for the year ended 31st December, 1999 -------------------------------------------------------------------- Continuing operations Discon- ---------------- tinued Acquis- opera- itions tions Total Total 1999 1999 1999 1999 1998 Change Euro m Euro m Euro m Euro m Euro m % Sales 5,844.5 637.4 251.9 6,733.8 5,210.9 +29.2 Less: Share of joint ventures 128.3 6.1 - 134.4 176.6 ------- ----- ----- ------- ------- Group sales 5,716.2 631.3 251.9 6,599.4 5,034.3 +31.1 Cost of sales 3,849.5 447.6 198.9 4,496.0 3,413.4 Exceptional impairment cost 15.3 - - 15.3 - ------- ----- ----- ------- ------- Gross Profit 1,851.4 183.7 53.0 2,088.1 1,620.9 Operating costs (1,294.0) (101.6) (43.4) (1,439.0) (1,194.2) Goodwill amortisation (9.0) (10.5) (0.1) (19.6) (1.3) ------- ----- ----- ------- ------- Operating profit 548.4 71.6 9.5 629.5 425.4 Share of joint ventures' operating profit 11.1 0.7 - 11.8 15.4 Profit on disposal of fixed assets 4.4 0.4 2.0 6.8 11.0 Exceptional gain on sale of Keyline - - 79.5 79.5 - Trading profit, including ------- ----- ----- ----- ----- share of joint ventures 563.9 72.7 91.0 727.6 451.8 +61.0 ======= ===== ===== Group interest payable (net) (91.8) (37.5) Share of joint ventures' net interest (0.9) (5.4) ----- ----- Profit on ordinary activities before taxation 634.9 408.9 +55.3 Taxation on profit on ordinary activities (152.0) (99.9) Taxation on exceptional items (25.7) - ----- ----- Profit on ordinary activities after taxation 457.2 309.0 Profit applicable to equity minority interests 3.1 3.3 Preference dividends 0.1 0.1 Profit for the year attributable to ----- ----- ordinary shareholders 454.0 305.6 +48.6 Dividends - paid 23.3 19.8 - proposed/payable 55.2 46.8 ----- ----- Profit retained for the financial period 375.5 239.0 ===== ===== Earnings per Ordinary Share Including exceptional items: - basic 116.38c 79.13c +47.1 - diluted 114.82c 78.58c +46.1 Excluding exceptional items: - basic 106.51c 79.13c +34.6 - diluted 105.08c 78.58c +33.7 Cash earnings per Ordinary Share 177.00c 122.09c +45.0 Statement of total recognised gains and losses for the year ended 31st December, 1999 ---------------------------------------------- 1999 1998 Euro m Euro m Profit for the year attributable to ordinary shareholders 454.0 305.6 Currency translation effects on - results for the year 22.4 (6.5) - foreign currency net investments 156.9 (15.2) ----- ----- Total recognised gains and losses for the financial year 633.3 283.9 ===== ===== Movements on profit and loss account ------------------------------------ 1999 1998 Euro m Euro m At 1st January 887.8 670.5 Profit retained for the financial year 375.5 239.0 Currency translation effects on results for the year 22.4 (6.5) Currency translation effects on foreign currency net investments 156.9 (15.2) Re-denomination of Ordinary / Income Shares (3.8) - Goodwill written back on disposal of Keyline 57.6 - ------- ----- At 31st December 1,496.4 887.8 ======= ===== Group balance sheet as at 31st December, 1999 --------------------------------------------- 1999 Restated 1998 --------------- --------------- Euro m Euro m Euro m Euro m Intangible assets Goodwill 629.2 138.2 Tangible fixed assets 3,225.8 2,287.6 Financial fixed assets Investment in joint ventures - share of gross assets 106.3 86.5 - share of gross liabilities (62.6) (57.1) - loans to joint ventures 14.2 15.6 Other investments 8.7 7.6 ----- ----- 66.6 52.6 Current assets Stocks 662.3 575.7 Debtors 1,082.5 905.6 Cash, short-term deposits and liquid resources 972.2 1,314.2 ------- ------- 2,717.0 2,795.5 ------- ------- Creditors (amounts falling due within one year) Bank loans and overdrafts 260.0 188.9 Trade and other creditors 1,042.0 897.5 Corporation tax 39.7 24.5 Dividends 55.2 46.8 ------- ------- 1,396.9 1,157.7 ------- ------- Net current assets 1,320.1 1,637.8 ------- ------- Total assets less current liabilities 5,241.7 4,116.2 ======= ======= Creditors (amounts falling due after more than one year) Loans 2,381.5 1,854.8 Deferred acquisition consideration 205.5 81.4 Corporation tax 32.2 31.1 ------- ------- 2,619.2 1,967.3 Capital grants 18.8 19.9 Provisions for liabilities and charges 365.0 289.7 Capital and reserves Called-up share capital: Equity share capital 133.1 128.0 Non-equity share capital 1.2 1.2 Equity reserves: Share premium account 561.1 527.1 Other reserves 9.9 9.9 Profit and loss account 1,496.4 887.8 ------- ------- Shareholders' funds 2,201.7 1,554.0 Minority shareholders'equity interest 37.0 285.3 ------- ------- 5,241.7 4,116.2 ======= ======= Supplementary information ------------------------- 1 Translation of foreign currencies ------------------------------------ The financial statements are presented in Euros. Results and cash flows of subsidiary and joint venture undertakings based outside the Euro countries have been translated into Euros at average exchange rates for the year, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. Adjustments arising on translation of the results of non-Euro subsidiary and joint venture undertakings at average rates, and on restatement of the opening net assets at closing rates, are dealt with in retained profits, net of differences on related currency borrowings. Any other translation differences are included in arriving at trading profit. Rates used for translation of results and balance sheets into Euros were as follows: Average Year-end Euro 1 = 1999 1998 1999 1998 U.S. Dollar 1.0658 1.1230 1.0046 1.1668 Pound Sterling 0.6587 0.6775 0.6217 0.7054 Polish Zloty 4.2274 3.9218 4.1587 4.0908 2 Discontinued operations -------------------------- On 4th June, 1999, the Group sold Keyline Builders Merchants Limited ('Keyline'), a subsidiary based in the UK, to Travis Perkins PLC. On 22nd March, 1999, the Group disposed of its entire holding in Caima Ceramica e Servicos SGPS S.A. ('Caima'), a former subsidiary of Ibstock PLC based in Portugal. No profit or loss arises on this transaction. On 29th October, 1999, the Group's subsidiary Farrans Limited sold the net assets and business of its Plant and Engineering division. The results of Keyline, Caima and of the Farrans Plant & Engineering Division up to the date of sale are reported under 'discontinued operations' in the Group profit and loss account. 3 Restatement of prior year balance sheet ------------------------------------------ Following implementation of Financial Reporting Standard 12 - Provisions, contingent liabilities and contingent assets (FRS 12), provisions amounting to Euro 204.9 million at 31st December, 1998 which were previously included in trade and other creditors in the balance sheet, are now analysed separately as part of provisions for liabilities and charges. 4 Exceptional items -------------------- 1999 ------------------------- Exceptional Taxation items Euro m Euro m Continuing operations - cost of sales - Fixed asset impairment cost, Premier Periclase (a) (15.3) (1.6) Discontinued operations - Profit on disposal of Keyline Builders Merchants (b) 79.5 27.3 ----- ---- Total exceptional items 64.2 25.7 ===== ==== (a) Financial Reporting Standard 11 - Impairment of Fixed Assets and Goodwill (FRS 11) requires an assessment of the carrying value of fixed assets, in situations where impairment may have arisen, by reference to future cash flows and estimated net realisable value. An impairment review of the fixed assets of Premier Periclase indicated that the current carrying value is not supported and a write-down has accordingly been reflected in these results. (b) As described in Note 2, the Group sold its UK subsidiary Keyline Builders Merchants Limited in June 1999. The profit on sale of Keyline, net of goodwill of Euro 57.6 million previously written-off against CRH reserves, amounted to Euro 79.5 million. 5 Geographical analysis ------------------------ Geographical analysis by destination 1999 1998 ------------- ------------- Euro m % Euro m % Sales, including share of joint ventures Republic of Ireland 599.8 8.9 540.9 10.4 Britain & Northern Ireland 847.6 12.6 770.2 14.8 Mainland Europe 1,580.9 23.5 1,143.0 21.9 The Americas 3,705.5 55.0 2,756.8 52.9 ------- ---- ------- ---- 6,733.8 100 5,210.9 100 Less share of joint ventures (134.4) ==== (176.6) ==== ------- ------- Group sales 6,599.4 5,034.3 ======= ======= Trading profit, including share of joint ventures Republic of Ireland 114.7 17.3 102.6 22.7 Britain & Northern Ireland 59.6 9.0 36.9 8.2 Mainland Europe 104.0 15.7 65.9 14.6 The Americas 385.1 58.0 246.4 54.5 ----- ---- ----- ---- Trading profit excluding exceptional items 663.4 100 451.8 100 Exceptional items, net 64.2 ==== - ==== ----- ----- Trading profit including exceptional items 727.6 451.8 ===== ===== Geographical analysis by origin 1999 1998 ------------- ------------- Euro m % Euro m % Sales, including share of joint ventures Republic of Ireland 626.0 9.3 577.2 11.1 Britain and Northern Ireland 843.6 12.5 749.7 14.4 Mainland Europe 1,557.3 23.1 1,127.6 21.6 The Americas 3,706.9 55.1 2,756.4 52.9 ------- ---- ------- ---- 6,733.8 100 5,210.9 100 Less share of joint ventures (134.4) ==== (176.6) ==== ------- ------- Group sales 6,599.4 5,034.3 ======= ======= Trading profit, including share of joint ventures Republic of Ireland 119.6 18.0 110.5 24.5 Britain and Northern Ireland 54.2 8.2 31.2 6.9 Mainland Europe 104.5 15.8 63.8 14.1 The Americas 385.1 58.0 246.3 54.5 ----- ---- ----- ---- Trading profit excluding exceptional items 663.4 100 451.8 100 Exceptional items, net 64.2 ==== - ==== ----- ----- Trading profit including exceptional items 727.6 451.8 ===== ===== 6 Movements in shareholders' funds ----------------------------------- 1999 1998 Euro m Euro m At 1st January 1,554.0 1,309.6 Profit retained for the financial year 375.5 239.0 Currency translation effects 179.3 (21.7) Issue of ordinary share capital (net of expenses) 35.3 27.1 Goodwill written-back on disposal of Keyline 57.6 - ------- ------- At 31st December 2,201.7 1,554.0 ======= ======= 7 Summarised cash flow ----------------------- This table summarises the Group's cash flows for 1999 and 1998. 1999 1998 Euro m Euro m Inflows Profit before tax (excluding exceptional items) 571 409 Depreciation and goodwill amortisation 275 166 Disposals 331 33 Share issues (net of expenses) 35 27 Working capital movement (47) 89 ----- ----- 1,165 724 ----- ----- Outflows Capital expenditure 360 232 Acquisitions and investments 1,421 604 Dividends 71 61 Tax paid 160 101 Other 14 16 ----- ----- 2,026 1,014 ----- ----- Net outflow (861) (290) Translation adjustment (79) 26 ----- ----- Increase in net debt (940) (264) ===== ===== 8 Other -------- 1999 1998 Dividend cover (times) * 5.29 4.59 EBIT interest cover (times) * 7.2 10.5 EBITDA interest cover (times) * 10.1 14.4 Average shares in issue (millions) 390.1 386.2 Net dividend per share (cents)** 20.00c 17.14c Tax credit on net dividend payable on: - Ordinary Shares - ** 0.952304c - Income Shares - ** 2.118608c Depreciation charge - Euro m 255.4 164.6 Goodwill amortisation charge - Euro m 19.6 1.3 Net debt - Euro m 1,669.3 729.5 Debt ratio 74% 39% Debt to year-end market capitalisation 20% 13% * dividend and interest cover including share of joint ventures and excluding exceptional items ** dividend payments made on or after 6th April, 1999 do not carry a tax credit 9 Abbreviated accounts ----------------------- The results disclosed herein do not represent full accounts. Full accounts for the year ended 31st December, 1999, upon which the Auditors have given an unqualified audit report, have not yet been filed with the Registrar of Companies. Full accounts for the year ended 31st December, 1998 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies. 10 Distribution of this Preliminary Announcement ------------------------------------------------- These results are available on the Group's Website at www.crh.ie. A printed copy is available to the public from Wednesday, 1st March, 2000 at the Company's registered office. 11 Annual Report post-out and Annual General Meeting (AGM) ------------------------------------------------------------- The 1999 Annual Report will be posted to shareholders on Monday, 27th March, 2000 together with details of the Scrip Dividend Offer in respect of the Final 1999 dividend. The 1999 Annual Report is available to the public from Tuesday, 28th March, 2000 at the Company's registered office. The Group's AGM will be held in Jurys Hotel on Wednesday, 3rd May, 2000.

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