CRH operating profits up 25%

Builder CRH has today announced a 25% increase in operating profit in 2011 to €871m.

Profit before tax and impairment charges at €743m, €85m higher than 2010.

After impairment charges, profit before tax of €711m and earnings per share of 82.6c were also up from 2010 levels.

Reported sales revenue for the first half of 2011 increased by 7%; on a like-for-like basis, excluding the impact of acquisitions, divestments and translation, underlying sales increased by 5%.

Overall sales revenue for the year of €18.1bn, an underlying increase of 5% comprised a

volume increase of approximately 3% and an increase of approximately 2% in average selling prices.

EBITDA of €1.,656bn was ahead of 2010 (€1.615bn) and of the guidance provided in our November 2011 updating statement.

Depreciation and amortisation charges amounted to €785m (€917m in 2010), including impairment charges of €21m relating to subsidiaries and joint ventures.

“The positive profit outcome for 2011 demonstrates the advantages of CRH’s product and sectoral end-use balance and the benefits of the extensive reorganisation and restructuring measures implemented in response to the exceptionally difficult markets of recent years,” said chief executive Myles Lee.

“Assuming no major economic or energy market dislocations, we expect to generate further like-for-like revenue growth in 2012 with the achievement of targeted price increases a key priority.

“This combined with benefits from acquisitions completed in 2011 leads us to expect further progress in the year ahead.”