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
24 April 2019
Commission
File No. 001-32846
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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 - April
2019
Press Release
Trading
Update - April 2019
CRH
plc, the global building materials group, issues the following
Trading Update for the period 1 January 2019 to 31 March 2019
in advance of its Annual General Meeting (AGM) which takes place
tomorrow at 11.00am in Dublin.
As
previously announced, the Group was reorganised into three
Divisions effective 1 January 2019: Americas Materials,
Europe Materials and Building Products.
Key Highlights
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A positive start to the year with first quarter like-for-like*
Group sales 7% ahead of the same period last year. Sales volumes
benefited from mild weather conditions and good momentum across
most of our major markets. Sales growth was also supported by
pricing progress across all major product lines.
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Our Ash Grove acquisition, completed in June 2018, traded in line
with expectations with synergy delivery progressing as
planned.
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Year-to-date the Group spent c. €0.2 billion on 16 bolt-on
acquisitions / investments.
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The Group has reached agreement to divest of its European Shutters
& Awnings business to StellaGroup for a total consideration in
excess of €0.3 billion.
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The strategic review of the Europe Distribution business is ongoing
as we consider all options to maximise shareholder
value.
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With a continued focus on business improvement, our Group-wide
profit improvement programme is advancing well in all business
areas.
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In light of our strong balance sheet and cash generation, the Board
is proposing to continue our share buyback programme with a further
tranche of up to €350 million to be completed before the
Group's interim results announcement in August.
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Group EBITDA, for the seasonally less significant first half of the
year, is expected to be in excess of €1.5 billion (H1 2018:
€1.13 billion) reflecting a mid-single digit percentage
increase on a like-for-like basis with a good contribution from
acquisition activity. This also includes the benefit of currency
exchange movements and the impact of IFRS 16 Leases.
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With normal weather patterns and in the absence of any major market
dislocations, like-for-like EBITDA in the second half of the year
is also anticipated to be ahead of the second half of
2018.
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*Like-for-like movements exclude the impact of currency exchange,
acquisitions, divestments and the impact of IFRS 16 on lease
accounting effective 1 January 2019
Trading Backdrop
Americas Materials Update
Like-for-like sales for our Americas Materials operations were 4%
ahead of the first quarter in 2018, benefiting from good underlying
demand, continued strong market fundamentals and pricing progress
across all product lines. Volumes of aggregates and asphalt were
ahead of 2018 due to milder weather in our North and South regions
while severe winter weather conditions in the West and in Canada
impacted readymixed concrete and cement volumes respectively. Ash
Grove performed in line with expectations with synergy delivery
progressing as planned.
This notably seasonal business typically sells less than 10% of
annual asphalt volumes and less than 20% of aggregates,
readymixed concrete and cement volumes in the first quarter of the
year.
Key Markets in Brief
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US Infrastructure: Moderate underlying growth with
state and local funding improvements in key markets; federal
funding reflects increased FAST Act allocation
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Residential: Modest growth in residential construction
activity, both new and RMI
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Non-Residential: Year-on-year growth with positive
trends in most segments; leading indicators consistently
positive
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Europe Materials Update
Like-for-like sales were 12% ahead in the first quarter aided by
continued positive trends in a number of key markets, good pricing
momentum and milder weather conditions compared to the very
unfavourable early-season weather experienced last
year.
Key Markets in Brief
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UK: Increased readymixed
concrete, asphalt and cement volumes against significantly
weather-impacted comparatives; favourable cement, asphalt and
aggregates pricing
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France: Good market demand
resulted in higher volumes; prices ahead
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Switzerland: Increased
cement volumes; prices slightly ahead of 2018
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Germany: Strong cement
market demand; prices ahead in all
products
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Ireland: Volumes ahead
with good demand; cement and readymixed concrete prices
ahead
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Finland: Cement volumes and prices slightly ahead of
2018
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Poland: Cement volumes
well ahead aided by good weather conditions; price increases across
all products
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South East Europe: Strong
cement volumes, particularly in Romania; prices
ahead
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Philippines: Cement
volumes strongly ahead of 2018 following the release of Government
infrastructure funding; prices also ahead
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Building Products Update
Building Products had a very satisfactory start to the year with
like-for-like sales for the first quarter 5% ahead of 2018. A
positive demand and pricing backdrop in our main markets was
supported by mild weather conditions.
Key Markets in Brief
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Products:
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In
Europe, improved volumes and pricing delivered like-for-like sales
growth across all platforms, with particularly strong performances
from our Architectural Products and Construction Accessories
businesses
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In the
United States (US), Architectural Products sales were ahead as good
underlying demand was supported by favourable weather and early
seasonal purchasing by homecenters
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BuildingEnvelope® like-for-like
sales improved driven by increased demand at C.R. Laurence as
well as volume and price increases at its architectural glass and
metal products business
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Oldcastle
Infrastructure sales growth was driven by stronger volumes and
price improvements across most geographies and end-use
segments
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Distribution: Good like-for-like sales growth in the first
quarter, driven primarily by our General Builders Merchants
businesses in Germany, the Netherlands and
France
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First Half Outlook
Group EBITDA, for the seasonally less significant first half of the
year, is expected to be in excess of €1.5 billion (H1 2018:
€1.13 billion) reflecting a mid-single digit percentage
increase on a like-for-like basis with a good contribution from
acquisition activity. This also includes the benefit of currency
exchange movements and the impact of IFRS 16 Leases. In Americas
Materials, with a continued positive demand environment,
like-for-like EBITDA is expected to be ahead of H1 2018.
Like-for-like H1 EBITDA is also expected to be ahead in Europe
Materials, despite challenges in the UK due to ongoing Brexit
related uncertainty. With continued momentum, like-for-like EBITDA
in Building Products is expected to show good improvement compared
with the same period last year.
Second Half Outlook
We expect growth in Americas Materials in the second half of the
year supported by continued advancement in both residential and
non-residential construction markets in the US along with increased
federal, state and local infrastructure funding measures. In Europe
Materials, while the good start to the year with more favourable
weather conditions is encouraging and we expect the second half
performance to be ahead of last year, we anticipate that the strong
rate of organic sales growth experienced in the first quarter is
likely to moderate. In Building Products, we expect growth in the
second half across all business segments in Europe and the US.
Against this backdrop and while maintaining a relentless focus on
progressing our profit improvement programme, we expect
like-for-like EBITDA in the second half of 2019 to be ahead of the
second half of 2018 (H2 2018: €2.24 billion).
Capital Allocation Update
Development Activity
As part of our continued focus on active portfolio management and
our previously announced €1.5 to €2 billion
divestment programme, the Group has reached agreement to divest of
its European Shutters & Awnings business to StellaGroup for a
total consideration in excess of €0.3
billion.
Year-to-date in 2019, the Group spent c. €0.2 billion on 16
bolt-on acquisitions / investments. Americas Materials completed 11
bolt-on acquisitions and one investment for a consideration of c.
€120 million and our Building Products Division completed
four acquisitions for c. €80 million.
The largest transaction to date in 2019 was the acquisition of
certain assets of Allied Concrete in Virginia by our Architectural
Products Group (APG). This strategic bolt-on serves as a geographic
in-fill for APG along the eastern seaboard of the US, connecting
APG's positions in the Washington DC area to those in the Carolinas
and enhances the platform's ability to serve mid-Atlantic hardscape
and masonry installers. The Building Products Division also
completed the acquisition of a paving plant in Poland and two other
acquisitions by Oldcastle Infrastructure in Washington and
Florida.
The Americas Materials Division completed one investment along with
ten bolt-on acquisitions in the US and one acquisition in Canada,
adding a total of over 70 million tonnes of permitted aggregates
reserves. These transactions involved the strategic expansion and
strengthening of existing aggregate operations, particularly in
Oregon and Florida.
As previously announced, our strategic review of the Europe
Distribution business is ongoing as we consider all options to
maximise shareholder value.
Share Buyback Programme
The total cash returned to shareholders over the last 12 months
under our ongoing share buyback programme was €1 billion, of
which €200 million was completed year-to-date. In light of
our strong balance sheet and cash generation, the Board is
proposing to continue our share buyback programme with a further
tranche of up to €350 million to be completed before the
Group's interim results announcement in August 2019. Any share
buybacks are subject to and shall comply with shareholder approval
of CRH's general authority to repurchase ordinary shares at the
Group's AGM tomorrow. Subsequent tranches will remain under active
consideration.
CRH will report its interim results for the six months ending 30
June 2019 on Thursday, 22 August 2019.
CRH plc will host an analysts' conference call and webcast
presentation at 08:30 BST on Wednesday, 24 April 2019 to discuss
the Trading Update. To join this call please dial: +353 (0)1
2460271, user PIN *0 (further international numbers are
available here).
A recording of the conference call will be available on the Reports
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. 90,000 people at c.
3,700 operating locations in 32 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
24 April 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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