Its profit before tax was €711m, €177m ahead of 2010.
The positive profit outcome for 2011 demonstrates the advantages of CRH’s balance of operations 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," he added. "This combined with benefits from acquisitions completed in 2011 leads us to expect further progress in the year ahead."
Trading in the early months of 2011 benefited from a much more favourable weather backdrop than at the start of 2010, said the company. Sales revenue for the first half increased by 7%; on a like-for-like basis, underlying sales increased by 5%. The pace of underlying growth, particularly in core Eurozone markets, slowed through the third quarter while heavy September rainfall in parts of the USA also had an adverse impact. However, the company experienced a strong finish to the year with mild November and December weather conditions.
Overall sales revenue for the year of €18.1bn was ahead of 2010. The underlying increase of 5% comprised a volume increase of approximately 3% and an increase of approximately 2% in average selling prices.
Total acquisition spend for 2011 amounted to €610m, on a total of 45 bolt-on transactions. These will contribute annualised sales of about €500m, of which €157m are reflected in the 2011 results.
Expenditure of €163m in the first half included 22 acquisition and investment initiatives across all six operating segments. The second half of the year saw a step-up in the pace of development activity with expenditure of €447m on 23 acquisitions including the VVM Group in Belgium. Total proceeds from completed disposals in 2011 amounted to €492m.
Cost reduction initiatives delivered incremental savings of €154m in 2011, bringing cumulative annualised savings under the cost reduction programme to approximately €2bn since 2007. CRH continues to seek opportunities to generate savings and said that it expects to extend the programme in 2012 with further initiatives. During 2011, it incurred costs of €61m in implementing the savings, bringing the cumulative total cost of implementation of the programme to €428m.
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