CRH Posts Loss In First Half; Sees Challenging Europe; Shares Fall

(RTTNews) - UK-based building materials group CRH Plc (CRH.L, CRH) Tuesday reported a loss for the first half compared with a profit last year, as sales fell amid continued weakness in key European markets. Looking ahead, the firm expects challenging trading conditions in Europe to remain for the remainder of 2013. The shares were down about 6 percent in the morning trade on the London Stock Exchange.

The company sees overall EBITDA for the second half to be in line with last year.

CRH noted that its Americas Products and Distribution businesses delivered improved margins, while in Europe, all three business segments reported declines in margins.

For the U.S., the firm anticipates second-half earnings before interest, tax, depreciation and amortization, or EBITDA to be ahead of last year, but overall EBITDA for the second half of the year is expected to be in line with last year at 1.04 billion euros.

For the first half ended June 30, the company posted a loss before tax of 71 million euros, compared to a profit of 102 million euros in the previous year.

On a per share basis, loss was 7.8 cents, against earnings of 13.4 cents per share in the same period last year. The company said it has restated its prior-year results to reflect the impact of new accounting rules for joint ventures and pensions.

Revenue for the period declined 3 percent to 8.01 billion euros from 8.27 billion euros in the prior- year period. On a like-for-like basis, excluding the impact of acquisitions, divestments and exchange translation, underlying sales fell 6 percent from 2012.

In Europe Materials, sales revenue fell 13 percent from last year, and products business in Europe showed a decline of 8 percent. Distribution business sales in Europe slid 3 percent from a year earlier.

Myles Lee, chief executive officer of the company said, "Although recent economic indicators suggest that the Eurozone may be emerging from recession, overall construction activity remains weak and we expect challenging trading conditions in Europe for the remainder of 2013."

The board has maintained its interim dividend at last year's level of 18.5 cents per share. The dividend, to shareholders of record on August 30, is payable on October 25.

In London, CRH shares are currently trading at 1,344 pence, down 82 pence or 5.75 percent.