It pointed to an improvement in the global economic backdrop; a US recovery that gained momentum and a Europe that was normalising.
The group said that 2014 was a year of growth for CRH, with different trends in the two halves. Europe in particular benefited from favourable weather conditions in the first half, and was the main driver of the 5% increase in like-for-like sales for the period. In the second half, the improving momentum in the Americas resulted in an 8% increase in like-for-like sales which more than offset the moderating second-half trends experienced in Europe.
In its results for the year ended 31 December, 2014, the company said that for the year it earned €761 million in pre-tax profit, compared to a €215 million loss in 2013.
The news follows CRH’s recent, and biggest, acquisition to date after reaching agreement to acquire €6.5 billion in assets being sold by
The deal will see CRH significantly expand its global businesses, and will see the group acquire production facilities in the Philippines, Canada, Brazil and further facilities in Europe.
Since 200 it is estimated that CRH has spent $24 billion on some 650 acquisitions.
Other financial highlights in its latest figures show EBITDA (earnings before interest, tax, depreciation, amortisation and impairment charges) up 11% to €1,641 million ahead of November guidance; cash inflow of €0.9 billion from operations; year-end net debt of €2.5 billion; increased margins in all divisions and strong operating leverage, and cost savings of €118 million, bringing cumulative total to €2.5 billion.
Strategic highlights include delivery on capital allocation and reallocation at attractive multiples; acquisitions and investments of €0.19 billion, and divestment and disposal proceeds of €0.35 billion (€0.58 billion due to complete in Q1 2015).
Albert Manifold, chief executive, said: “2014 was a year of strong strategic, operational and financial progress for CRH. We were able to use the underlying strength of our business to capitalise on the recovering markets and deliver a return to profit and margin growth.
“With further improvements expected in market conditions across our main geographies, together with easing commodity prices, the benefits of cost efficiencies and a favourable exchange translation effect, we expect 2015 to be another year of progress.”
In its outlook, CRH said that in the United States, the pace of GDP growth is expected to pick up in 2015 and it belives that the fundamentals are in place for continued positive momentum in the economy. Demand in the residential construction market continues to expand, albeit at a more moderate rate, while recovery in the non-residential market is starting to gather pace. While the infrastructure market remains broadly stable, there is upside potential due to the growing economy and increased state spending.
In Europe, the general market environment continues to normalise across its main markets.
The outlook for 2015 is somewhat mixed, particularly in the first half for which the 2014 comparatives reflect the benefit of very benign weather conditions.
In CRH’s generally stable markets in Western Europe the group expect to see some improvement in overall demand in 2015, particularly in residential activity.
While the outlook in Ukraine remains very uncertain, CRH anticipates that demand will increase in Eastern Europe, driven primarily by an expected pick up in the roads programme in Poland towards the second half of the year.
With the improvements expected in market conditions across its main geographies, together with easing commodity prices, the benefits of cost efficiencies and a favourable foreign exchange translation effect, CRH expects 2015 to be a further year of progress.
