Blueprint
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, DC
20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A - 16 OR 15D - 16 OF
THE SECURITIES EXCHANGE ACT OF 1934
26 November 2019
Commission
File No. 001-32846
____________________________
CRH
public limited company
(Translation of registrant's name into English)
____________________________
Belgard Castle, Clondalkin,
Dublin 22, Ireland.
(Address of principal executive offices)
____________________________
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F X Form
40-F___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by
Regulation
S-T Rule 101(b)(1):_________
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by
Regulation
S-T Rule 101(b)(7):________
Enclosure:
Trading Update - November
2019
Press
Release
Trading
Update - November 2019
CRH
plc, the global building materials group, issues the following
Trading Update for the period 1 January 2019 to 30 September
2019.
Key Highlights
● Strong
performance with nine-month EBITDA 27% ahead of
2018
● Group-wide
profit improvement programme advancing well
● Further
value creation through continued portfolio
refinement:
c. €2bn divestments, c. €0.7bn acquisitions to
date
● Maintaining
strong financial discipline; expect year-end net debt/EBITDA
<2x
● Ongoing
share buyback programme; c. €750m cash returned to
shareholders year-to-date
● 2019
full-year EBITDA expected to be in excess of €4.15bn; another
year of progress
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Nine months ended 30 September
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2019
€bn
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2018
€bn
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Change
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Like-For-Like
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Sales revenue
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21.8
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19.9
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+9%
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+4%
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EBITDA
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3.2
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2.5
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+27%
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+7%
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Trading Summary
Third quarter trading in our Americas Materials Division benefited
from more favourable weather conditions than experienced in the
first half of the year. We also experienced a continuation of
positive trends in both Europe Materials and Building Products.
Cumulative nine-month sales to the end of September amounted to
€21.8 billion, an increase of 9% compared with the
corresponding period in 2018, or 4% ahead on a
like-for-like1 basis.
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Sales (like-for-like) change versus 2018
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Americas Materials
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Europe Materials
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Building Products
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Group
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First
half (H1)
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+2%
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+6%
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+3%
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+3%
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Quarter
3 (Q3)
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+7%
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+5%
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+3%
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+5%
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Nine months to September (9M)
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+4%
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+6%
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+3%
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+4%
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EBITDA for the period was €3.2 billion reflecting an increase
of 27% on the prior year, or 7% on a like-for-like basis. Our
Group-wide profit improvement programme is advancing well in all
business areas.
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EBITDA (like-for-like) change versus 2018
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Americas Materials
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Europe Materials
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Building Products
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Group
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First
half (H1)
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+3%
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+2%
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+8%
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+5%
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Quarter
3 (Q3)
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+12%
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+3%
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+6%
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+9%
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Nine months to September (9M)
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+9%
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+2%
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+7%
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+7%
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Trading Outlook
Based on continued positive momentum in all Divisions,
contributions from acquisitions, the impact of IFRS 16 Leases and
currency tailwinds, full-year EBITDA, including
discontinued2 operations,
is expected to be in excess of €4.15 billion (2018:
€3.37 billion). As we look ahead to 2020, we expect solid
market fundamentals to continue across our key
markets.
1Like-for-like
movements exclude the impact of currency exchange, acquisitions,
divestments and the impact of IFRS 16 on lease accounting effective
1 January 2019
2Discontinued
operations relates to the 2019 accounting treatment of Europe
Distribution divested on 31 October 2019
Americas Materials Update
Nine-month like-for-like sales for our Americas Materials
operations were 4% ahead of the same period in 2018, against a
backdrop of solid underlying demand, healthy market fundamentals
and pricing progress in all product lines. Following weather
disruption earlier in the year, volumes in all products improved in
Q3. Ash Grove is performing well with synergy delivery ahead of
original expectations. With price improvements in all products and
a continued focus on operational and commercial initiatives,
like-for-like EBITDA for the period improved by 9%. A similar
increase is expected for full-year like-for-like
EBITDA.
Key Markets in Brief
●
US
Infrastructure: Continued underlying growth with good
momentum in state and local funding in key markets; federal funding
reflects increased FAST Act allocation
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Residential: Modest growth
in residential construction activity with good underlying
fundamentals in key states
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Non-Residential: Steady
growth in spend supported by a favourable economic
backdrop
Key Products in Brief
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Aggregates: Total
aggregates volumes for the nine months, including the impact of
acquisitions and divestments, were 6% ahead of 2018 while
like-for-like volumes increased 1% across our footprint; average
year-to-date prices increased by 5% with increases in all
regions
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Asphalt: Good Q3
performance following a shortfall in Q2 with nine-month volumes in
line with 2018 on a total and like-for-like basis; average prices
increased by 6% offsetting cost inflation
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Readymixed
Concrete: Volumes for the nine months were 12% ahead of
2018 and 2% ahead on a like-for-like basis; average prices were 4%
ahead of the same period last year
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Paving and Construction
Services: Nine-month sales in our paving and
construction services business increased 3% over 2018 with good
momentum in our Central and North regions of the United States (US)
and Canada
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Cement: Nine-month volumes
in the US were well ahead of 2018 due to the acquisition of Ash
Grove which completed at the end of June 2018 while volumes in
Canada were 3% ahead of 2018; pricing progress in both
markets
Europe Materials Update
With good underlying activity in key Western and Eastern European
markets, Europe Materials nine-month like-for-like sales were 6%
ahead of 2018, aided by good pricing momentum and solid volumes
growth. However, in the United Kingdom (UK), construction activity
continued to decline amidst Brexit-related uncertainty. Nine-month
like-for-like EBITDA was 2% ahead of the same period last year,
reflecting increased pricing and the benefit of performance
improvement initiatives partly offset by continued market
disruption in the UK. Full-year like-for-like EBITDA growth is also
expected to be approximately 2%.
Key Markets in Brief
● UK: Lower
aggregates, cement and asphalt volumes; favourable pricing in these
same products offset by increased input costs
● France: Good market demand with higher cement and
readymixed concrete volumes; prices ahead
● Switzerland: Challenging market conditions with volumes
slightly behind; cement prices ahead of 2018
● Germany: Solid cement market demand; prices ahead in cement
and readymixed concrete
● Ireland: Strong market demand and favourable weather with volumes
and prices ahead in all major products
● Finland: Softer
market conditions with lower volumes; cement and aggregates prices
ahead
● Poland: Cement volumes well ahead aided by solid
construction activity; price increases across all
products
● South East Europe: Strong cement volumes; pricing progress in
all markets
● Philippines: Volumes impacted by a
slowdown in the infrastructure segment due to delays in government
budget approval; prices ahead
Building Products Update
Nine-month like-for-like sales were 3% ahead of 2018 reflecting a
positive economic backdrop and pricing progress in our main
markets. Like-for-like EBITDA was up 7% due to strong performances
in all platforms, with full-year like-for-like EBITDA growth
expected to be at a similar level.
Key Products in Brief
●
Architectural Products: In
North America, like-for-like sales and EBITDA were ahead of 2018 as
good underlying demand was supported by selling price increases and
strong homecenters sales of higher margin products; in Europe, our
businesses delivered strong operating leverage on increased sales
as price increases, product mix optimisation and performance
initiatives led to improvements, particularly in our Polish
business
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BuildingEnvelope®: Like-for-like
sales and EBITDA improved driven by increased demand, a favourable
pricing environment and more stable costs in North
America
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Infrastructure
Products: Like-for-like sales and EBITDA growth in
North America was driven by price improvements, more than
offsetting higher input costs, along with commercial and
operational initiatives; performance in Europe was ahead of the
same period in 2018 with good demand in the rail and telecoms
sectors
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Construction
Accessories: Solid sales and EBITDA growth driven by
good demand on major projects in the UK, higher selling prices and
favourable product mix in the US
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Distribution: Year-on-year
improvement in most countries, partly offset by continued
challenges in the Swiss market with overall sales and EBITDA ahead
of 2018; the divestment of our Europe Distribution business was
completed in October 2019 for an enterprise value of €1.64
billion
Profit Before Tax Outlook
We expect full-year depreciation and amortisation expense (before
impairment charges) to be higher than last year due to the impact
of IFRS 16 Leases (2018: €1.1 billion).
The profit after tax on the divestment of our Europe Distribution
business is expected to amount to c. €0.2 billion and will be
included in profit after tax from discontinued operations. The net
gain on other business and non-current asset disposals in 2019 is
expected to be c. €0.2 billion.
The Group's share of profits from equity accounted entities is
expected to be broadly similar to last year (2018: €60
million).
Net finance costs are expected to increase from last year (2018:
€351 million) as a result of higher lease interest due to the
impact of IFRS 16 Leases along with higher average debt levels in
the period.
Taking each of these elements into account together with our EBITDA
outlook, we expect full-year profit before tax from continued and
discontinued operations to be ahead of 2018 (2018: €1.9
billion).
Balance Sheet Expectations
In line with our previous guidance, year-end net debt is expected
to be close to €7 billion, resulting in net debt to EBITDA
well below 2.0x based on a forecast year-end US dollar/euro
exchange rate of 1.12, including development and share buyback
activity to date and expected share buyback activity for the
remainder of the year.
Portfolio Management and Capital Allocation
Demonstrating CRH's commitment to active portfolio management as
part of our strategy to deliver improved shareholder value, the
Group has spent c. €0.7 billion on 44 acquisition/investment
transactions to date in 2019 (including deferred and contingent
consideration in respect of prior year acquisitions). On the
divestment front, together with the divestment of our Europe
Distribution business on 31 October 2019, the Group completed four
other transactions and realised total business and asset disposal
proceeds of c. €2 billion.
2019 Acquisitions and Investments
The Building Products Division completed a total of 15 bolt-on
acquisitions at a cost of c. €0.42 billion. One of the
largest acquisitions in the year-to-date was Torrent Resource,
Inc., which was acquired in November 2019 for c. €0.1
billion. This acquisition strengthens CRH's storm water and water
management presence in western US and offers significant commercial
and operational synergy potential to our Infrastructure Products
business. The Americas Materials Division completed 20 bolt-on
acquisitions and two investments at a cost of c. €0.2
billion. In Europe Materials, c. €35 million has been spent
on seven transactions; five acquisitions and two
investments.
2019 Divestments and Disposals
The majority of year-to-date divestment proceeds relate to the
divestment of our Europe Distribution business in October 2019 for
enterprise value of c. €1.64 billion. In June, the Group also
completed the divestment of our European Shutters & Awnings
business for total consideration of c. €0.3 billion. Our
Perimeter Protection business in Europe was divested in September
2019 for total consideration of c. €0.1 billion.
Share Buyback Programme
On 23 August 2019, the Group announced its intention to continue
its share buyback programme with a further tranche of up to
€350 million to be completed no later than 3 January 2020.
This will bring our total share repurchases in 2019 to
approximately €900 million. Further tranches will remain
under active consideration.
CRH will report its preliminary results for the full-year 2019 on
Friday 28 February 2020.
CRH plc will host an analysts' conference call and webcast
presentation at 08:30 GMT on Tuesday, 26 November 2019 to discuss
the Trading Update. To join this call please dial: +353
(0)1 553 0196, user PIN *0 (further international numbers are
available here).
A recording of the conference call will be available on the Results
and Presentations page of the CRH website.
Contact CRH at +353 1 404 1000
Albert Manifold
Chief Executive
Senan
Murphy
Finance Director
Frank
Heisterkamp Head of
Investor Relations
About CRH
CRH (LSE: CRH, ISE: CRG, NYSE: CRH) is the leading building
materials business in the world, employing c.78,000 people at
c.3,100 operating locations in 31 countries. It is the largest
building materials business in North America, the largest heavyside
materials business in Europe and has a number of strategic
positions in the emerging economic regions of Asia and South
America. CRH manufactures and supplies a range of integrated
building materials, products and innovative solutions which can be
found throughout the built environment, from major public
infrastructure projects to commercial buildings and residential
structures. A Fortune 500 company, CRH is a constituent member of
the FTSE 100 index, the EURO STOXX 50 index, the ISEQ 20 and the
Dow Jones Sustainability Index (DJSI) Europe. CRH's American
Depositary Shares are listed on the NYSE.
For more information visit www.crh.com
Disclaimer
In order to utilise the "Safe Harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995, CRH public
limited company (the "Company"), and its subsidiaries
(collectively, "CRH" or the "Group") is providing the following
cautionary statement.
This document contains statements that are, or may be deemed
to be forward-looking statements with respect to the financial
condition, results of operations, business, viability and future
performance of CRH and certain of the plans and objectives of CRH.
These forward-looking statements may generally, but not always, be
identified by the use of words such as "will", "anticipates",
"should", "could", "would", "targets", "aims", "may", "continues",
"expects", "is expected to", "estimates", "believes", "intends" or
similar expressions. These forward-looking statements include
all matters that are not historical facts or matters of fact at the
date of this document.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future and reflect
the Company's current expectations and assumptions as to such
future events and circumstances that may not prove
accurate.
A number of material factors could cause actual results and
developments to differ materially from those expressed or implied
by these forward-looking statements, certain of which are beyond
our control, as detailed in the section entitled "Risk Factors" in
our 2018 Annual Report on Form 20-F as filed with the US Securities
and Exchange Commission.
You are cautioned not to place undue reliance on any
forward-looking statements. These forward-looking statements are
made as of the date of this document. The Company expressly
disclaims any obligation or undertaking to publicly update or
revise these forward-looking statements other than as required by
applicable law.
The forward-looking statements in this document do not constitute
reports or statements published in compliance with any of
Regulations 6 to 8 of the Transparency (Directive 2004/109/EC)
Regulations 2007.
Registered Office: No 12965. Registered Office: 42 Fitzwilliam
Square, Dublin 2, R02 R279, Ireland
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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CRH public limited company
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(Registrant)
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Date
26 November
2019
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By:___/s/Neil
Colgan___
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N.Colgan
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Company Secretary
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