As the group announced that its chief executive, Myles Lee, will retire from CRH at the end of 2013 following completion of a five-year term, it also reported revenues at the group advanced by 3% to €18.7 billion, while EBITDA increased by 1% cent on 2011.
This was helped by “strong recovery in residential construction and improving overall economic activity in the United States,” said Lee, who joined the group in 1982.
Sales in the Americas division advanced by 15% and EBITDA increased 12% to €0.85 billion, although European sales fell by 7%, having to “contend with weakening consumer and investor confidence within the Eurozone.”
European sales down 7% and EBITDA was down 12% at €0.79 billion
CRH’s operating profits fell by 3% to €845 million, after combined restructuring and impairment charges of €88 million. Profit before tax dropped by 5% to €674 million.
The group says it has “one of the strongest balance sheets in the global building materials sector,” and said its operational highlights include continued focus on cost management; cost savings of €166 million delivered in 2012; cumulative annualised cost savings of €2.2 billion since 2007, over 40% permanent in nature; further cost reductions of approximately €0.3 billion in three-year period to 2015; acquisitions/investment activity of €0.65 billion; an active portfolio management with proceeds of €0.86 billion from disposals.
“Assuming no major financial or energy market dislocations, we expect that ongoing improvements in our businesses in the Americas combined with further profit improvement initiatives throughout our operations will outweigh continuing trading pressures in our European segments, enabling the group to achieve progress in 2013,” said Myles Lee, who will be 60 when he retires.
