CRH Posts Loss In FY13, Maintains Dividend, Sees Profit Growth In FY14; Stock Up

(RTTNews) - Shares of CRH Plc (CRH.L, CRH) increased around 3 percent in the morning trade in London after the UK-based building materials group said it expects 2014 to be a year of profit growth with projected progress in the Americas, noting that trading so far has been ahead of last year. Meanwhile, the company posted a loss in its fiscal 2013 on hefty impairment charge as well as lower like-for-like sales, and maintained its dividend.

For the financial year ended December 31, the company's loss before tax was 215 million euros, compared to pre-tax profit of 646 million euros in the prior year. The prior year results have been restated to reflect the impact of new accounting rules for joint ventures and for pensions.

Loss per ordinary share was 40.6 cents versus profit of 74.5 cents in the prior year.

The latest results included non-cash impairment charges of 755 million euros, primarily arising from the ongoing portfolio review. Adjusted earnings per share were 59.5 cents, compared to last year's profit of 98.6 cents.

Operating profit fell significantly to 100 million euros from the previous year's 805 million euros. Adjusted operating profit declined 10 percent year-over-year to 750 million pounds.

Earnings before interest, tax, depreciation, and amortisation or EBITDA, before impairment charges dropped 6 percent to 1.48 billion euros.

Annual revenue edged down to 18.03 billion euros from last year's 18.08 billion euros. On a like-for-like basis, sales fell 2 percent, as the 6 percent drop in first half was partly offset by a 2 percent rise in the second half.

In Europe, like-for-like sales declined 5 percent, which impacted EBITDA margins in the face of competitive market pressures, despite intense management focus and internal actions.

Like-for-like sales in the Americas grew 2 percent in the year, with a 5 percent rise in the second half benefited by improving economic and construction trends. With higher sales and good cost control, EBITDA margins improved in all three Americas segments.

Further, CRH said its board recommended a final dividend of 44 cents per share, in line with last year. This gives a total dividend of 62.5 cents for the year, maintained at last year's level. The dividend would be paid on May 12 to shareholders registered at the close of business on March 7.

Chief Executive Albert Manifold said, "...we believe that dynamic allocation and reallocation of resources to optimise the portfolio, together with our traditional tight cost control and capital discipline and our relentless focus on returns, will be key to driving growth and to rebuilding returns and margins over the coming years."

In London, CRH shares are currently trading at 1,741 pence, up 57 pence or 3.38 percent.