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
17
November 2016
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):________
N
E W S R E L E A S E
17
November 2016
TRADING
UPDATE
CRH
plc, the international building materials group, issues the
following Trading Update for the period 1 January 2016 to 30
September 2016.
Trading
Performance
●
As expected, third
quarter trading benefited from continued growth in the Americas,
albeit at a more modest pace than in the first half which benefited
from favourable early season weather; in Europe the momentum
remained positive.
●
Cumulative sales
amounted to €20.4 billion for the nine months to the end of
September, an increase of 22% compared with the corresponding
period in 2015. On a proforma1 basis, sales were 6%
higher than 2015.
Proforma 2016 sales change versus 2015
|
Europe
|
Americas
|
Asia
|
Group
|
First
half (H1)
|
+3%
|
+13%
|
+4%
|
+8%
|
Quarter
3 (Q3)
|
+4%
|
+1%
|
+3%
|
+2%
|
9 months to September (9M)
|
+4%
|
+8%
|
+4%
|
+6%
|
●
EBITDA for the nine
months to the end of September was €2.4 billion, an increase
of 14% on proforma 2015.
Proforma 2016 EBITDA change versus 2015
|
Europe
|
Americas
|
Asia
|
Group
|
First
half (H1)
|
+5%
|
+39%
|
+7%
|
+20%
|
Quarter
3 (Q3)
|
+5%
|
+11%
|
+8%
|
+9%
|
9 months to September (9M)
|
+5%
|
+21%
|
+7%
|
+14%
|
●
A relentless focus
on performance in all our businesses, coupled with our vertically
integrated business model for heavyside materials, delivered good
operational leverage underpinning improved margins and
returns.
Full
Year Outlook
●
As previously
stated and despite significant currency headwinds, overall EBITDA
outturn for the year is estimated to be in excess of €3
billion, well ahead (> 35%) of last year (2015 reported:
€2.22 billion); the expected outturn includes a full year
contribution from 2015 acquisitions and is after taking into
account the impact of divestments and one-off items.
●
We continue to
maintain a strong focus on prudent financial management, and we
remain on track to deliver year-end net debt of less than 2 times
EBITDA.
1 Proforma comparisons
are at constant currency; include the 2015 pre-acquisition trading
of the LH and CRL acquisitions; and exclude all divested entities
and certain one-off items.
Full
Year Outlook, continued
We
expect full year depreciation and amortisation expense to be circa
€1.1 billion (2015 reported: €0.9
billion).
Profits
on sale of property, plant and equipment for 2016 are expected to
be broadly similar to last year (2015 reported: €39 million).
The net gain/loss on business disposals in 2016, which is dependent
on the timing of divestment transactions still to be completed, is
unlikely to be material (2015 reported: €62
million).
The
Group's share of profits from equity-accounted entities is expected
to be approximately €30 million (2015 reported: €44
million), reflecting the sale of certain investments in 2015 and
reduced performance in some markets.
Net
finance costs are expected to be broadly similar to last year (2015
reported: €389 million) as the non-recurrence of a cost of
€38 million charged in 2015 for the early redemption of a
portion of the US$ bonds is expected to be offset by the cost of
increased debt in 2016.
Finance
and Development Update
Assuming no further
material acquisitions or divestments for the remainder of 2016, and
based on forecast exchange rates, we expect year-end net debt to be
less than €6 billion (2015: €6.6 billion); this implies
a net debt/EBITDA ratio of less than 2 times at end-2016,
delivering on our commitment to restore our debt metrics to
normalised levels in 2016.
Development spend
for the first nine months of 2016 amounted to €172 million
(including deferred payments on prior year acquisitions) on 17
acquisitions and investments. Disposal proceeds for the first nine
months amounted to €163 million.
Europe
Update
Proforma results in
the first half of this year were ahead of the strong first half of
2015 and, on the back of continued recovery in some key markets,
proforma sales and EBITDA were also ahead of Q3 2015. Assuming
normal weather patterns for the remainder of the year, we expect
Europe EBITDA for 2016 as a whole to be in excess of €1
billion.
Europe
Heavyside: Following growth of 4% in the first half of 2016,
proforma sales in the third quarter were 8% ahead of Q3 2015,
bringing cumulative 9M proforma sales 5% ahead of 2015. Proforma
EBITDA in the third quarter was 5% ahead of 2015 and cumulative
proforma EBITDA was 4% above the same period in 2015.
Key
Markets in Brief
●
U.K.: improved volumes and prices of
cement, aggregates and readymixed concrete partly offset by lower
asphalt volumes due to project delays; limited Brexit impact on
trading to date
●
France: improving private demand
supporting increased volumes but pricing remains
competitive
●
Switzerland: volumes remain robust but
prices challenging in competitive markets impacted by strong Swiss
franc
●
Benelux: improving economic backdrop in
the Netherlands positively impacting residential
demand
●
Germany: improving volumes of main
products but price pressure persists
●
Denmark: positive economic backdrop
supporting strong demand and improved pricing
●
Ireland: strong momentum in construction
demand continues
●
Poland: despite solid macro-economic
backdrop volumes below 2015; significant price
pressure
●
Finland: recovery of construction market
continues, improved volumes in all products, pricing still
competitive
●
Ukraine: markets continue to be
resilient; cement volumes ahead of 2015 with prices
improving
●
South East Europe: good progress in
residential and non-residential demand offset by poor weather and
moderating infrastructure spend
Europe Lightside: Following a strong
start to the year, proforma sales in the third quarter were up 4%
compared with 2015, reflecting good demand for key products in
major markets; proforma EBITDA for the period was 10% ahead of Q3
2015 bringing cumulative proforma EBITDA 12% above the same period
in 2015.
Europe
Update, continued
Key
Markets in Brief
●
Construction Accessories: improved
performance due to positive momentum in some key markets and
exports
●
Shutters & Awnings: good progress
resulting from internal cost control focus and stable market
backdrop
●
Network Access
Products: strong demand and favourable product mix in some key
markets
●
Perimeter
Protection: increased demand for mobile fencing and internal cost
control partly offset by weaker permanent fencing
Europe Distribution: Reflecting the
mixed economic backdrop in some key markets, proforma sales reduced
by 2% in the third quarter, compared with a first half increase of
1%. Proforma EBITDA for the period was 5% ahead of Q3 2015 as cost
and commercial focus resulted in improved margins.
Key
Markets in Brief
●
Belgium: increased demand particularly
for SHAP partly offset by reduced new residential
construction
●
Netherlands: ongoing signs of improving
overall sentiment; increasing residential demand
●
Switzerland: activity impacted by
slowing demand in our key markets
●
Germany: RMI sector broadly in line; DIY
remains resilient
Americas
Update
Against
the backdrop of increased construction activity in the United
States, our Americas operations benefited in the third quarter from
good underlying demand following the strong first half which
benefited from favourable weather. Proforma sales for the quarter
were up 1% compared to Q3 2015 while proforma EBITDA improved by
11% reflecting a strong margin improvement. For the full year we
expect EBITDA to be in excess of €1.9 billion based on a
projected average full year 2016 US dollar/euro exchange rate of
1.11.
Americas Materials: Following a very
strong first half, which benefited from favourable weather that
facilitated project acceleration, the third quarter experienced
more normalised demand patterns with proforma sales in line with Q3
2015. Year to date September proforma sales were 6% ahead of the
same period last year. The improving first half margin trends
continued and proforma EBITDA for the quarter was 14% ahead of last
year.
Key
Markets in Brief
●
Infrastructure: stable Federal funding
underpinned by the FAST Act; State funding increasing
●
Non-Residential: improving activity
supporting positive volume and price trends
●
Aggregates: proforma volumes in line
with Q3 2015; up 7% in the nine months to end
September
●
Asphalt: proforma volumes down 2% in Q3;
up 6% in the nine months to end September
●
Readymixed concrete: proforma volumes in
line with Q3 2015; up 7% in the nine months to end
September
●
Cement: proforma volumes (principally
Canada) down 2% in Q3; up 1% for the nine months to end
September
Americas Products: With strong market
conditions in all major end use segments for both new construction
and RMI continuing, the third quarter experienced ongoing sales
growth albeit at a more moderate pace than the favourably weather
impacted first half. Third quarter proforma sales were 5% ahead of
Q3 2015, with year to date September 12% ahead of the same period
last year. Proforma EBITDA in the third quarter was 9% ahead of Q3
2015, reflecting better volumes and a continued focus on commercial
and cost initiatives.
Markets
in Brief
●
Non-Residential: activity advancing
steadily, supported by low interest rates and increasing
employment
●
Residential: expanding in most regions;
positive single and multi-family home trends
Americas
Update, continued
Americas Distribution: Third quarter
proforma sales were slightly ahead of Q3 2015, bringing cumulative
growth to 8% for the nine months to end September. Proforma EBITDA
for the third quarter was 1% ahead of Q3 2015, bringing the growth
in cumulative proforma EBITDA to 11% compared with the first nine
months of 2015.
Markets
in Brief
●
Non-Residential: higher Q3 sales on the
back of good new construction activity
●
Residential: following a very strong
weather impacted first half residential roofing demand
moderated
Asia
The
newly formed Asia division reflects the results from the
Philippines operations acquired as part of the LH Assets in the
second half of 2015 together with CRH Asia's divisional costs.
Proforma results in the first half of this year were ahead of the
first half of 2015 and on the back of favourable underlying demand
fundamentals in the Philippines, proforma sales and EBITDA further
advanced in Q3 compared to 2015. With the ongoing demand backdrop
we expect EBITDA for 2016 as a whole to be in excess of €100
million.
Separately, the
Group's investments in India and China are equity-accounted and
CRH's share of profit after tax from these businesses is reported
in profit before tax along with the Group's other equity-accounted
investments.
Key
Markets in Brief
●
Philippines: economic growth supported
by strong domestic consumption, low inflation and a low debt to GDP
ratio; cement market demand continues to grow and prices
advanced
●
India: volumes ahead due to favourable
economic backdrop but pricing remains challenging
●
China: volumes and prices remain under
pressure in the north east of China
_________
CRH
will report its Preliminary Results for full year 2016 on Thursday,
2 March 2017.
This
document contains certain forward-looking statements as defined
under US legislation. By their nature, such statements involve
uncertainty; as a consequence, actual results and developments may
differ from those expressed in or implied by such statements
depending on a variety of factors including the specific factors
identified in this document and other factors discussed in our
Annual Report on Form 20-F filed with the SEC.
CRH plc will host an analysts' conference call
at 08:30 GMT on Thursday, 17 November 2016 to discuss the
statement. To join this call please dial: +353 (0)1 2460271 using
Conference Code 6886650#, PIN *0 (further international numbers are
available here).
A presentation to accompany this
call and audio playback will be available on the
Reports
and Presentations page of
the CRH website.
Contact
CRH at Dublin 404 1000 (+353 1 404 1000)
Albert
Manifold
Chief
Executive
Senan
Murphy
Finance Director
Frank
Heisterkamp
Head of Investor
Relations
Mark
Cahalane
Group Director, Corporate Affairs
CRH
plc, Belgard Castle, Clondalkin, Dublin 22, Ireland TELEPHONE
+353.1.404.1000 FAX +353.1.404.1007
E-MAIL [email protected]
WEBSITE www.crh.com
Registered Office, 42 Fitzwilliam
Square, Dublin 2, Ireland
Appendix
1: Divisional Proforma Sales and EBITDA 2016 change versus
2015
For the
comparison below 2016 and 2015 figures are adjusted to exclude the
results from businesses which have now been divested and also to
exclude certain one-off cost items. The information for 2015 has
also been adjusted to reflect the following:
●
proforma full year
2015 results attributable to the LH Assets and CRL (both acquired
in Q3 2015),
●
a currency
translation adjustment in order to provide comparatives on a
constant currency basis with 2016 figures.
Proforma Sales 2016 change versus 2015
|
First
Half
|
Third
Quarter
|
Nine
Months
|
Europe
Heavyside
|
+4%
|
+8%
|
+5%
|
Europe
Lightside
|
+8%
|
+4%
|
+7%
|
Europe
Distribution
|
+1%
|
-2%
|
0%
|
Total Europe
|
+3%
|
+4%
|
+4%
|
Americas
Materials
|
+12%
|
0%
|
+6%
|
Americas
Products
|
+16%
|
+5%
|
+12%
|
Americas
Distribution
|
+11%
|
+1%
|
+8%
|
Total Americas
|
+13%
|
+1%
|
+8%
|
Total Asia
|
+4%
|
+3%
|
+4%
|
Total CRH
|
+8%
|
+2%
|
+6%
|
Proforma EBITDA 2016 change versus 2015
|
First
Half
|
Third
Quarter
|
Nine
Months
|
|
Europe
Heavyside
|
+4%
|
+5%
|
+4%
|
|
Europe
Lightside
|
+14%
|
+10%
|
+12%
|
|
Europe
Distribution
|
+5%
|
+5%
|
+5%
|
|
Total Europe
|
+5%
|
+5%
|
+5%
|
|
Americas
Materials
|
+69%
|
+14%
|
+26%
|
|
Americas
Products
|
+21%
|
+9%
|
+16%
|
|
Americas
Distribution
|
+26%
|
+1%
|
+11%
|
|
Total Americas
|
+39%
|
+11%
|
+21%
|
|
Total Asia
|
+7%
|
+8%
|
+7%
|
|
Total CRH
|
+20%
|
+9%
|
+14%
|
|
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.
CRH public limited company
(Registrant)
Date 17
November 2016
By:___/s/Neil
Colgan___
N.Colgan
Company Secretary