6th Mar 2007 07:02
CRH PLC06 March 2007 CRH plc 2006 RESULTS Year ended 31st December 2006 2006 2005 % change euro m euro mRevenue 18,737 14,449 +30%Operating profit* 1,767 1,392 +27%Profit before tax 1,602 1,279 +25% euro cent euro centEarnings per share 224.3 186.7 +20%Cash earnings per share 352.1 292.5 +20%Dividend 52.0 39.0 +33%* Operating profit is stated before profit on disposal of fixed assets. • Against a background of higher input costs and declining USresidential construction, CRH has once again performed strongly in 2006 todeliver record full year organic growth and a significant incrementalcontribution from acquisition activity. • Total operating profit from European operations improved 20% to euro814 million after net non-recurring charges of euro 12 million. • In Europe Materials, after a good first half improvement, strongermomentum in the second half resulted in full year operating profit of euro 421million, an increase of 12%. • Europe Products benefited from good acquisition contributions and withstronger underlying second half trading reported a 26% increase in operatingprofit to euro 221 million, an increase of 44% before a euro 31 millionnon-recurring charge. • Europe Distribution delivered satisfactory acquisition contributionsand good organic growth to report a 39% increase in operating profit to euro 172million, an increase of 24% before euro 19 million of non-recurring income. • Total operating profit for the Americas operations improved 33% toeuro 953 million. • Americas Materials achieved a 45% increase in operating profit to euro475 million reflecting significant success in the recovery of higher inputcosts, a substantial organic operating profit advance and good acquisitioncontributions. • Americas Products delivered a 22% increase in operating profit to euro375 million, a combination of organic growth and satisfactory acquisitioncontributions. • Full year operating profit from Americas Distribution grew by 28% toeuro 103 million with the operating margin at 7.1% similar to the excellentlevel achieved in 2005. • The total dividend has been increased by 33%. This reflects the firststep in a phased reduction in dividend cover aimed at achieving cover of theorder of 3.5 times for the 2008 financial year. The 2006 dividend was covered4.3 times (2005: 4.8 times). • Total acquisition expenditure was a record euro 2.1 billion (net ofselective APAC disposals). EBITDA/net interest cover for the year remained verycomfortable at 9.7 times. Liam O'Mahony, Chief Executive, said today: "2006 was another year of delivery by CRH both in development, with a recordacquisition spend, and operationally, with record organic growth and strongimprovements in all key financial performance measures. Cash generation remainsrobust and with comfortable interest cover the Group can accommodate a higherlevel of dividend payout while continuing to take advantage of a strongdevelopment pipeline. With an ongoing focus on price and cost effectivenessacross our operations, further benefits from the record 2006 acquisition spendand a sustained emphasis on development, we expect to achieve further progressin the year ahead." Announced Tuesday, 6th March 2007 __________________________________________________________________________ Contact CRH at Dublin 404 1000 (+353 1 404 1000) Liam O'Mahony Chief ExecutiveMyles Lee Finance DirectorEimear O'Flynn Head of Investor RelationsMaeve Carton Group Controller CRH plc, Belgard Castle , Clondalkin, Dublin 22, Ireland TELEPHONE +353.1.404 1000 FAX +353.1.404 1007 E-MAIL [email protected] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam Square , Dublin 2, Ireland RESULTS HIGHLIGHTS Against a background of higher input costs and declining US residentialconstruction, CRH has once again performed strongly in 2006 to deliver recordfull year organic growth and a significant incremental contribution fromacquisition activity. The results highlights for 2006 are set out below andreflect two non-recurring items (described in the Finance paragraph on page 8)which taken together had an adverse impact of euro 12.3 million on reportedprofits. The results include the proportionate consolidation of joint ventures in theGroup's income statement, cash flow statement and balance sheet while theGroup's share of profit after tax of associates is included as a single lineitem in arriving at Group profit before tax. • Sales revenue: euro 18,737 million, up 30%• EBITDA*: euro 2,456 million, up 25%• Operating profit**: euro 1,767 million, up 27%• Profit before tax: euro 1,602 million, up 25%• Basic earnings per share: 224.3c, up 20%• Cash earnings per share: 352.1c, up 20%• Dividend per share: 52.0c, up 33% * EBITDA = earnings before interest, tax, depreciation and amortisation,excluding profits on disposal **Excluding profit on disposal of fixed assets The average US $/euro rate of 1.2556 for 2006 was little changed compared with2005 (1.2438) while average rates for the Group's other major operatingcurrencies also showed little movement. Combined these resulted in a modestadverse exchange impact of euro 4 million, equivalent to just 0.3% of 2005'sprofit before tax level of euro 1,279 million. Note 3 on page 15 analyses thekey components of 2006 performance. DIVIDEND The Board is recommending a final dividend of 38.50c per share, an increase of39% on the 2005 final dividend of 27.75c. This gives a total dividend for theyear of 52.0c, an increase of 33%, representing the twenty-third consecutiveyear of dividend growth. It is proposed to pay the final dividend on 14th May2007 to shareholders registered at the close of business on 16th March 2007. This significant 2006 dividend increase reflects the first step in a phasedreduction in dividend cover which, subject as always to changes in marketconditions, aims to achieve dividend cover of the order of 3.5 times for the2008 financial year. The 2006 dividend was covered 4.3 times (2005: 4.8 times). DEVELOPMENT AND FINANCE Total net acquisition spend in 2006 amounted to euro 2.1 billion, a record forthe Group. The highlight was the acquisition in August by Americas Materials ofAPAC, a leading US aggregates, asphalt and heavy highway construction company.Other significant transactions were the acquisition in May of Halfen, a leadingEuropean producer of metal construction accessories used in commercial, civilengineering and residential construction and the creation of a new product groupfor Americas Products with the acquisition in April of MMI, a manufacturer anddistributor of construction accessories, welded wire reinforcement and fencingproducts. In addition the Group completed 66 other transactions across itsvarious product segments. In September 2006, the Group completed a US$1.75 billion Global Bond Issue,which substantially extended the maturity profile of the Group's net debt. Theissue raised US$0.5 billion of 5-year money and US$1.25 billion due forrepayment in 10 years. This Bond Issue, which is rated BBB+/Baa1/BBB+, wassignificantly over-subscribed and broadly distributed to over 120 investors. Theissue followed two previous US$1 billion issues in September 2003 and March2002. SEGMENT REVIEW EUROPE - MATERIALS Analysis of change Acquisitions Totaleuro million 2005 Exchange 2005 2006 Organic 2006 ChangeSales revenue 2,646 +5 +21 +33 +262 2,967 +321% change - +1% +1% +10% +12%Operating profit* 377 +1 +2 +5 +36 421 +44% change - +1% +1% +10% +12%Margin 14.2% 14.2%*Operating profit is before profit on disposal of fixed assets After a good first half operating profit improvement, stronger momentum in themore profitable second half resulted in a very satisfactory profit advance for2006. Ireland : It was another good year in Ireland with further growth in overallconstruction output leading to an increase of approximately 3% in our totalcement volumes. Significant input cost increases were recovered in sellingprices and, with maintained margins, profits were ahead of 2005. In the Republicof Ireland residential activity was again the main driver; the commercial andindustrial sector remained strong while the National Development Plan continuedto deliver good infrastructure activity. In Northern Ireland , while the roadsprogramme suffered a serious decline, the housing and commercial sectors werestrong. Finland/Baltics: Our operations in Finland benefited from stronger housingdemand, increased commercial and industrial construction and a number of majorinfrastructure projects. The cement market grew by about 8% and our aggregatesand readymixed concrete businesses enjoyed good demand. Sales volumes in theBaltic region and in the St. Petersburg operations were also well ahead of 2005levels. Overall, good volume increases and better pricing delivered improvedprofitability. Central Eastern Europe: In Poland a rapid recovery in activity following aweather-affected start and unusually mild weather at the end of the year led tosustained construction demand with cement volumes up 29% for the year. Theresultant increased capacity utilisation of our Ozarow cement plant provedespecially rewarding and, with stronger demand in our lime, aggregates, asphaltand concrete products activities, overall profits improved significantly. InUkraine better cement volumes, efficiency gains and improved pricing more thanoffset the impact of severe gas cost increases resulting in higher operatingprofit. Switzerland : Construction output grew by about 2%, with all sectors barinfrastructure showing some increase over 2005. As expected, the completion ofthe concrete-intensive stages of the major Lotschberg alpine tunnel led to areduction of approximately 10% in our cement volumes. However, with bettercement prices and a good advance in profitability in downstream readymixedconcrete, aggregates and asphalt operations overall operating profit improved. Iberia : While our Spanish readymixed concrete and concrete products operationshad healthy volume increases due to strong residential and infrastructuredemand, higher input costs and increased competition put pressure on marginsresulting in a profit outcome broadly in line with 2005. The Group's 26.3%associate stake in Spanish cement producer Corporacion Uniland is accounted forusing the equity method in reporting 2006 results. In Portugal , constructiondeclined by approximately 7% reflecting reduced activity in housing and asignificant reduction in public capital expenditure. While cement volumes in itsdomestic markets declined, our Secil joint venture in cement and downstreamproducts had a satisfactory year helped by strong demand in export markets andtight cost control. Eastern Mediterranean: In Israel our 25% associate reported an operatingperformance broadly in line with 2005, a good performance given the verydifficult political situation in the region throughout the year. EUROPE - PRODUCTS Analysis of change Acquisitions Non-recurring Totaleuro million 2005 Exchange 2005 2006 Items Organic 2006 ChangeSales revenue 2,533 +4 +245 +276 - +128 3,186 +653% change - +10% +11% - +5% +26%Operating profit* 176 - +25 +20 -31 +31 221 +45% change - +15% +11% -18% +18% +26%Margin 6.9% 6.9%Excl. non-recurring 6.9% 7.9%*Operating profit is before profit on disposal of fixed assets Our Europe Products operations benefited from improving markets and deliveredstronger underlying trading, particularly in the second half. This combined withgood acquisition contributions delivered a much improved operating profitoutturn. Excluding the net charge of euro 31 million for non-recurring items,operating profit advanced 44% while operating profit as a percentage of salesimproved from 6.9% in 2005 to 7.9% in 2006, a welcome step-up in margin. Thecomments on operating performance below do not reflect non-recurring items whichare discussed on page 8. Concrete Products: The group reported a strong profit advance with goodcontributions from acquisitions and solid organic growth from the legacybusinesses. Structural operations (floor/wall elements, beams, vaults anddrainage products) delivered excellent results driven by tight operationalcontrol and strong markets in the Netherlands , Belgium , France , Denmark andPoland . Our sand-lime brick business improved its performance through growthfrom new products and better operating efficiencies. Despite a slow start due tounfavourable weather conditions, our architectural operations (pavers, tiles andblocks) performed well ahead of last year with strong advances in Belgium ,Denmark and Slovakia and a full year's contribution in France from Stradal,which was acquired in August 2005. In Germany , internal improvements and astrong focus on sales prices resulted in a better outcome. Continued pricecompetition in the Netherlands and difficult market conditions in the UK had anadverse impact, though this was more than compensated for by other regions. Ourmaterials trading and readymixed concrete joint venture in the Netherlandscontinued to experience difficult trading conditions. Clay Products: In Mainland Europe overall profitability improved despitefurther energy cost increases and planned stock reduction. Clay brick and blockmarkets in Poland strengthened following a late spring, our Benelux operationsadvanced and the long-standing weak German brick market showed some very earlysigns of recovery in the final quarter. In the UK , brick industry volumesdeclined further while energy costs increased significantly in the first half ofthe year with some moderation in the final quarter. As a result, UK profits werelower than last year with reduced volumes more than offsetting benefits fromprice increases, good cost control and energy-saving projects. Overall, thegroup delivered a comparable performance to the prior year as the decline in UKprofitability was offset by a better outcome from our Mainland Europeanoperations. Building Products: The Building Products Group, with turnover of euro 1.2billion in 2006, comprises three broad product segments: ConstructionAccessories, Insulation, and the strategically linked Fencing & Security (F&S),Daylight & Ventilation (D&V) and Roller Shutters & Awnings (RSA) businesses. OurConstruction Accessories business was significantly enlarged by the acquisitionof Halfen in May, while heritage operations achieved profit improvement due tostrong market conditions in Belgium , France and Spain . Although Insulationoperations continued to suffer from severe volatility in raw material costs, astrong advance in sales and operating profit was realised due to volume andprice improvements, benefits from restructuring and further good cost control. F&S had another year of progress despite stronger competition and higher inputcosts, while D&V operations maintained overall profitability despite acontinuing competitive backdrop. Our new RSA business acquired in Augustperformed ahead of expectations. EUROPE - DISTRIBUTION Analysis of change Acquisitions Non-recurring Totaleuro million 2005 Exchange 2005 2006 Items Organic 2006 ChangeSales revenue 2,193 -6 +418 +65 - +116 2,786 +593% change - +19% +3% - +5% +27%Operating profit* 123 - +12 +4 +19 +14 172 +49% change - +10% +3% +15% +11% +39%Margin 5.6% 6.2%Excl. non-recurring 5.6% 5.5%*Operating profit is before profit on disposal of fixed assets Operating profit in Europe Distribution was substantially ahead of 2005 levels,reflecting satisfactory acquisition contributions and good organic growth. Excluding non-recurring income of euro 19 million, operating profit advanced24% and operating profit as a percentage of sales declined slightly from 5.6% in2005 to 5.5% in 2006 reflecting an increased proportion of lower margin buildersmerchanting sales which accounted for 72% of turnover in 2006 compared with 67%in 2005. The change in composition reflects the impact of the Quester andBauking acquisitions, in Austria and Germany respectively, both of which werecompleted in the latter months of 2005. The comments on operating performancebelow do not reflect non-recurring items which are discussed on page 8. Builders Merchants: Our Dutch builders merchanting activities benefited frommore positive market conditions and reported solid sales growth. This, togetherwith a continued focus on margin and costs, resulted in a substantialimprovement in operating profit. In France both our 100%-owned business in Ile-de-France and our joint venture inBurgundy and Franche Comte saw significant improvement in sales and operatingprofit due to better market conditions and benefits from profit improvementmeasures of recent years. Good market conditions led to another record year for our operations inSwitzerland which delivered a significant advance in operating profit, helped bythe completion of two acquisitions which added seven branches in theGerman-speaking part of Switzerland . In Germany , our 48% Bauking joint venture, acquired in December 2005, had avery successful first year within the Group. Aided by rigorous cost control andsome uplift in the German market, results exceeded expectations. In Austria ,Quester, which was acquired in October 2005, had a disappointing start to theyear. However, following first half re-organisation measures, the businessdelivered a much improved performance in the second half. DIY: Despite improved consumer confidence, the DIY market in the Benelux showedonly moderate growth for 2006 as a whole. Against this backdrop our branchnetwork reported another satisfactory year with improved profitability.Bauking's DIY business delivered sales and profits in line with expectations inits first full year with the Group. Our DIY joint venture in Portugal made goodprogress, opening one further location following five such openings in 2005. AMERICAS - MATERIALS Analysis of change Acquisitions Totaleuro million 2005 Exchange 2005 2006 Organic 2006 ChangeSales revenue 3,165 -30 +186 +904 +553 4,778 +1,613% change -1% +6% +29% +17% +51%Operating profit* 328 -3 +27 +45 +78 475 +147% change -1% +8% +14% +24% +45%Margin 10.4% 9.9%Excl. APAC 10.4% 11.2%*Operating profit is before profit on disposal of fixed assets The Americas Materials Division had an excellent year, both in development withthe acquisition of Ashland Paving And Construction (APAC), and operationallywith significant success in recovering higher energy and other input costs.Bitumen costs increased by 50%; energy used at our asphalt plants had acomposite cost increase of 10%, while diesel fuel and gasoline used to power ourmobile fleet increased by 14%. Against this backdrop, overall prices increased10% in aggregates, 15% in readymixed concrete and 27% in asphalt, the productmost impacted by input cost increases. Non-residential demand continued toimprove and more than offset the decline in new residential construction.Overall funding for highway projects showed a satisfactory improvement; however,as anticipated, with relatively fixed highway budgets the volume of activity wasimpacted by the strong price increases. Total volumes, including acquisitioneffects, increased 10% for aggregates, 20% for readymixed concrete and 27% forasphalt. Heritage volumes declined by approximately 2% for aggregates and 3% forasphalt, while readymixed concrete volumes were broadly unchanged. The overall 2006 margin of 9.9% (2005: 10.4%) reflected the dampening effect ofAPAC's profitable but lower margin business mix combined with once-off APACintegration costs. APAC recorded sales of euro 761 million and operating profitof euro 26 million in the last four months of the year. The operating marginexcluding APAC advanced strongly to 11.2%. New England: New Hampshire and Vermont enjoyed better trading in improvingmarkets. Massachusetts had another excellent year with solid demand and apositive pricing environment. The states of Maine and Connecticut both reducedhighway spending and higher prices impacted volumes at the municipal and locallevel. New York/New Jersey : These businesses had record results reflecting stabledemand, real price increases and internal cost efficiencies. Our large quarrieswhich service the greater New York Metro area improved their operationalperformance. In Upstate New York, our Albany operations once again increasedprofits in good markets, while our Rochester operations reported an improvedoutcome following declines in 2004 and 2005. Central: The region delivered record results with strong price improvement,benefits from its bitumen winter fill progamme and acquisition contributions.While Michigan continued to suffer in poor public and private markets, Ohio hada strong year with healthy highway markets and improved pricing especially inaggregates. Pennsylvania and Delaware continued to improve with internal costefficiencies and steady markets. Our Kentucky and West Virginia operations,acquired in 2005, had a satisfactory year with improved pricing offsetting lowervolumes. West: Local economies remained strong overall with solid non-residential andhighway markets offsetting softening residential demand. Once again, Utah andIdaho saw significant profit gains due to a better pricing environment ingenerally buoyant markets for all products. In Washington , results improvedsignificantly. Our operations in Wyoming , Montana , South Dakota , Colorado andNew Mexico had another record year despite increased readymixed concretecompetition. However, our heritage Iowa operations suffered profit declines as aresult of weak residential demand and several new readymixed concrete entrantsin the Des Moines area. APAC: Integration of APAC, acquired at the end of August, has progressed wellwith the ongoing realisation of near-term synergies and selective disposals ofperipheral contracting and asphalt units. Although APAC's structurally lowermargins and integration costs impacted the Division's overall operating marginin 2006, underlying trading in the business for our first four months ofownership was in line with expectations. AMERICAS - PRODUCTS Analysis of change Acquisitions Totaleuro million 2005 Exchange 2005 2006 Organic 2006 ChangeSales revenue 2,756 -16 +113 +492 +227 3,572 +816% change +4% +18% +8% +30%Operating profit* 308 -1 +3 +22 +43 375 +67% change +1% +7% +14% +22%Margin 11.2% 10.5%Excl. MMI 11.2% 11.3%*Operating profit is before profit on disposal of fixed assets Following a very strong first half, the demand backdrop and underlying growthrates for our Americas Products operations moderated through the second half ofthe year as residential construction activity declined. However, overall secondhalf demand remained broadly positive helped by strong and growingnon-residential markets. Regionally, our operations in the western andsoutheastern states performed particularly well in strong markets, the Midwestoperations improved on 2005 while results from northeastern operations wereweaker. 2006 marked the creation of a new product group with the acquisition of MMIProducts, Inc. (MMI) in April. Due to its particular business mix, MMI'soperating profit margin is much lower than in our existing APG, Precast andGlass activities. Excluding MMI, which delivered sales of euro 424 million andoperating profit of euro 19 million for CRH's period of ownership in 2006, theoperating profit margin is 11.3%, which compares with 11.2% reported for 2005. Architectural Products Group (APG): APG faced tougher residential markets butdelivered a robust performance for 2006 as a whole. Price increases and thebenefit of acquisition contributions helped to once again deliver double-digitpercentage growth in sales and operating profit for the year. Regionally, theWest and South enjoyed strong markets, the Midwest performed well despite softercommercial and residential activity, while the Northeast suffered in a poormarket with increased competition. Glen Gery performed satisfactorily inweakening markets. Bagged soil and mulch activities had a disappointingperformance in a very difficult pricing environment and management actions havebeen taken to improve this business going forward. Precast: The continued strength of the residential construction sector duringthe first half of the year, along with growth in non-residential, commercial andinfrastructure construction markets, resulted in a second consecutive year ofrecord volumes from our legacy operations. Good cost control and effective pricemanagement led to margin improvements and another year of record profits for thegroup. Glass: The group achieved record results with good growth in both sales andoperating profit. Strong markets produced robust demand for energy-efficientarchitectural glass products and, with increased demand for hurricane-resistantand blast-resistant architectural glass, laminated glass products achievedrecord sales growth. MMI: MMI is a leading US manufacturer and distributor of mainly non-residentialoriented building products with operations in three distinct product segments:construction accessories, wire products and fencing products. MMI is a leaderin each of these segments. Although somewhat affected by weakness in its lesssignificant residential markets, MMI delivered a satisfactory performance in itsfirst eight months within the group and integration of the business continuesapace. South America: Our operations in Argentina and Chile had a record year againstan improved regional economic background. In Argentina , strong sales andprofits in our ceramic tile business were partly offset by slightly lowerprofits in our glass operations. Our Chilean glass business performed well. AMERICAS - DISTRIBUTION Analysis of change Acquisitions Totaleuro million 2005 Exchange 2005 2006 Organic 2006 ChangeSales revenue 1,156 -11 +125 +137 +41 1,448 +292% change -1% +11% +12% +3% +25%Operating profit* 80 -1 +13 +12 -1 103 +23% change -1% +15% +15% -1% +28%Margin 7.0% 7.1%*Operating profit is before profit on disposal of fixed assets Americas Distribution comprises two divisions which supply specialist contractorgroups: Roofing/Siding and Interior Products (wallboard, steel studs andacoustical ceiling systems). In 2006 Roofing/Siding accounted for 70% ofturnover and Interior Products 30%. While the latter months of the year sawdeclining demand in the new-build segment, 2006 was another year of growth forAmericas Distribution with good performances from both heritage and acquiredbusinesses. The operating profit margin of 7.1% was similar to the excellentlevel achieved in 2005. Roofing/Siding demand is largely influenced by residential replacement activitywith the key products having an average life span of roughly 20 years. Demandremained generally robust throughout the year, although Florida experienced asecond half decline, following 24 months of unusually high activity generated byextensive storm damage during the 2004 and 2005 hurricane seasons. The InteriorProducts division is focused equally on the commercial and residentialconstruction markets. Over the last two years we have significantly expandedthis segment and in 2006 it delivered excellent incremental sales and operatingprofit contributions. FINANCE In accordance with International Accounting Standard 36 Impairment of Assets,goodwill arising on business combinations is subject to annual impairmenttesting. The Group's 2006 impairment testing has resulted in a euro 50 millionwrite-down of goodwill relating to its 45% Cementbouw bv joint venture. Thisjoint venture was established in 2003 in a leveraged buyout of Cementbouw'smaterials trading and readymixed concrete operations in the Netherlands ,undertaken in conjunction with CRH's 100% purchase of Cementbouw's distribution,concrete and clay products activities. A significant proportion of the financingfor the joint venture was provided in the form of non-recourse debt. The jointventure has experienced difficult trading in recent years and is currently indiscussions with its banking group. The write-down has been charged againstEurope Products in reporting operating profit by business segment. During 2006, in response to legislative changes in the Netherlands , CRH reachedagreement with its employees in the Netherlands on changes to certain pensionarrangements which altered their basis under International Financial ReportingStandards (IFRS) from defined benefit to defined contribution. This resulted inthe elimination of certain defined benefit obligations from the Group's balancesheet with a resultant pre-tax gain of euro 37.7 million which has beenreflected in arriving at operating profit for 2006. Of this euro 18.9 millionhas been credited to Europe Products and euro 18.8 million to EuropeDistribution in reporting operating profit by business segment. Although higher short-term interest rates and substantial acquisition activityover the past two years resulted in a significant increase in net finance coststo euro 252 million (2005: euro 159 million), EBITDA/net interest cover for theyear remained very comfortable at 9.7 times (2005: 12.3 times). Profit after taxfrom associates of euro 47.2 million (2005: 25.9 million) increased principallydue to the inclusion of the Group's 26.3% share of Corporacion Uniland's resultsfor the year. The tax charge at 23.6% of Group profit before tax increasedcompared with 2005 (21.3%). Net debt increased by just over euro 1 billion despite a total net spend of euro2.9 billion on acquisitions, investments and capital projects, partly helped bya euro 188 million favourable translation impact mainly attributable to theweaker year-end rate for the US Dollar. Net debt at year-end amounted to euro4,492 million (2005: euro 3,448 million). The adverse euro translation impact ofeuro 371 million on total equity was principally due to the effect of the weakerUS Dollar. DEVELOPMENT Total net acquisition spend in 2006 amounted to euro 2.1 billion, a record forthe Group. During the course of 2006 Europe Materials committed euro 69 million to 12bolt-on deals in Ireland , Estonia , Poland , Portugal , Slovakia , Switzerlandand Ukraine . In addition work continued on a number of capital projectsinitiated in earlier years which will come on stream in early 2007. Theseincluded replacement and upgrading of the clinker production facility atLappeenranta in Finland and conversion of our Ukraine cement kilns to coal andpetcoke firing. Towards year-end the Division announced a major €200 millionreplacement/expansion project at its existing Platin ( Ireland ) cement plant.This will be built to BAT (best available technology) standards, will greatlyreduce specific CO2 emissions, and enable CRH to effectively serve the Irishmarket into the future. Europe Products continued its recent strong development thrust with a totalcommitment of euro 345 million on 13 acquisitions. This included the acquisitionin May of Halfen, a leading European producer of metal construction accessoriesused in commercial, civil engineering and residential construction. Thisacquisition established CRH as the market leader in construction accessories inEurope . The Concrete group was particularly active completing seventransactions in Belgium , France , Germany , Switzerland and the UK andconcluding CRH's first acquisition in Italy with the purchase of Record, aprominent concrete landscaping manufacturer in the Lombardy and Piedmontregions. The acquisition in August of AVZ, the leading designer and distributorof awning systems and roller shutters in the Netherlands , was a first step in apromising new product segment which has strategic links with our Fencing &Security and Daylight & Ventilation activities. Three other transactions wereconcluded by the Clay, Fencing & Security and Construction Accessories groups. After a busy 2005 which saw major expansion into Austria and Germany , 2006 wasa quieter development year for Europe Distribution. The Division completed sixbolt-on acquisitions in Belgium, France, Netherlands and Switzerland for acombined cost of euro 38 million adding a total of ten outlets to its existingbuilders merchanting network in Europe. In addition the Division opened fourgreenfield DIY stores in the Netherlands and a further DIY store in Portugal . The highlight of the Group's record 2006 development spend was the acquisitionin August by Americas Materials of APAC, a leading US aggregates, asphalt andheavy highway construction company, for a total consideration of euro 1.0billion (US$1.3 billion). Subsequent selective disposals prior to year-end ofnon-core asphalt and highway and construction units in line with the re-focusingof APAC's activities reduced the net outlay to euro 0.85 billion (US$1.1billion). APAC represents a major expansion into new materials markets insouthern and mid-western states and adds a fifth operating region to theDivision. Another notable development was the announcement in August of ourentry into the North American cement market through a joint venture to develop a1.1 million tonne greenfield cement plant in central Florida . The Division alsocompleted 19 other bolt-on transactions across its operations. Total developmentexpenditure including the net APAC consideration and an initial US$50minvestment in our Florida cement joint venture amounted to approximately euro1.1 billion. Americas Products spent a total of euro 380 million on acquisitions during 2006.The pick-up in acquisition activity experienced by the Precast group in 2005continued in 2006 with four acquisitions completed during the year. APGcompleted three transactions including the purchase of the Sakrete(R) brandnameas part of its national growth strategy in dry mixed product lines. The GlassGroup acquired Antamex, a leading Toronto-based supplier of high-performancecurtain wall systems, and also completed two transactions in Florida and Texas .2006 also marked the creation of a new product group for Americas Products withthe acquisition in April of MMI. Americas Distribution invested euro 132 million in six transactions during theyear. Five interior products acquisitions were concluded adding 21 branches toits network. These included the acquisition of one of the largest interiorproducts distributors in Texas . With five locations this represented our firstdistribution venture in the state. Three acquisitions in Florida added ninebranches, while the purchase of a seven-branch business in the Carolinas andVirginia extended our activities into the Carolinas and complemented ourexisting presence in Washington D.C. and Maryland . Completion in November ofour first roofing/siding acquisition in the Hawaiian islands added fourbranches. OUTLOOK The market outlook for Europe Materials in 2007 is good. In Ireland , whilehousing output is expected to soften it should remain at a high level and anydecline is likely to be offset by increased activity in the infrastructure andpublic sectors. Commercial and industrial demand is expected to remain strongwith overall construction activity similar to 2006. Construction output inFinland is forecast to expand further with continuing increases innon-residential investment and infrastructure and stable housing demand. InPoland , the availability of European Union funding for the major road-buildingprogramme will underpin strong infrastructural activity with non-residential andresidential also contributing to growth. Ukraine is expected to experiencestrong demand for both cement and aggregates. Modest construction growth isanticipated in Switzerland with non-residential demand compensating for declinesin infrastructure. Spanish construction activity is expected to remain atcurrent levels with any weakening in the housing sector likely to be offset byincreased infrastructure spending. In Portugal , markets are expected to remainweak. Overall, Europe Materials expects continued organic growth helped by anumber of major capital projects, targeted at increasing production capacity andreducing costs, coming on-stream early in 2007. Forecasts for the Europe Products & Distribution Division's key markets showfurther growth in 2007. In the Netherlands , where turnover amounted to euro 2.2billion in 2006, consumer confidence continues to strengthen and new residentialand non-residential markets continue to improve. Activity in Belgium isexpected to remain close to the high levels of recent years with a stableresidential market and modest declines in non-residential and infrastructure. InFrance , we anticipate continued strength in the new residential market togetherwith moderate growth in non-residential and infrastructure demand. The Germannew residential sector appears to have bottomed while other constructionsegments are showing clear signs of recovery. The outlook in our Swissresidential and non-residential markets remains attractive while in Austria weexpect a much improved performance from our operations. Although the UK housingmarket is expected to moderate in 2007, brick volumes should stabilise. Overall,we look to continued profit growth in Products & Distribution activities in theyear ahead. From an underlying Americas Materials demand viewpoint, the current overalloutlook is for stable to slightly declining volumes for the division as a whole.Infrastructure is the key end-use for this Division and while funding isforecast to increase further in 2007, volumes and activity levels will continueto be influenced by input cost movements and associated product pricing trends.Further improvement in non-residential markets is expected to offset residentialdeclines. Our priority for the year is to continue the improving underlyingtrend in operating profit margin evident in our 2005 and 2006 performance,through the ongoing achievement of efficiency gains, cost reduction andadditional price improvements. With a continuing favourable pricing environment,a sustained focus on operating efficiency and with benefits from our record 2006development spend, we look forward to another year of significant progress forthis Division. Americas Products & Distribution's new residential construction markets in theUS declined steadily through the second half of 2006 and are expected to showcontinued weakness into mid-2007, with recovery expected to commence later inthe year. However, residential repair, maintenance and improvement expenditures,which have historically been less cyclical, should remain at or close to 2006levels while non-residential demand, which saw good improvement in 2006, isexpected to maintain momentum into 2007. With its balanced geographic, productand end-use diversity, and with new US residential construction accounting forapproximately 25% of Divisional end-use demand - and less than 10% of the CRHGroup overall - Americas Products & Distribution looks to another good year in2007. 2006 was another year of delivery by CRH both in development, with a recordacquisition spend, and operationally, with record organic growth and strongimprovements in all key financial performance measures. Cash generation remainsrobust and with comfortable interest cover the Group can accommodate a higherlevel of dividend payout while continuing to take advantage of a strongdevelopment pipeline. With an ongoing focus on price and cost effectivenessacross our operations, further benefits from the record 2006 acquisition spendand a sustained emphasis on development, we expect to achieve further progressin the year ahead. __________________________________________________________________________ This statement contains certain forward-looking statements as defined under USlegislation. By their nature, such statements involve uncertainty; as aconsequence, actual results and developments may differ from those expressed inor implied by such statements depending on a variety of factors including thespecific factors identified in this statement and other factors discussed in ourAnnual Report on Form 20-F filed with the SEC. ___________________________________________________________________________________ GROUP INCOME STATEMENTFor the year ended 31st December 2006 2006 2005 euro m euro mRevenue 18,737.4 14,449.3Cost of sales (13,123.8) (9,901.7)Gross profit 5,613.6 4,547.6Operating costs (3,846.8) (3,155.3)Group operating profit 1,766.8 1,392.3Profit on disposal of fixed assets 40.5 19.8Profit before finance costs 1,807.3 1,412.1Finance costs (407.3) (297.4)Finance revenue 155.2 138.3Group share of associates' profit after tax 47.2 25.9Profit before tax 1,602.4 1,278.9Income tax expense (378.2) (272.6)Group profit for the financial year 1,224.2 1,006.3 Profit attributable to:Equity holders of the Company 1,210.2 997.9Minority interest 14.0 8.4Group profit for the financial year 1,224.2 1,006.3 Earnings per Ordinary ShareBasic 224.3c 186.7cDiluted 222.4c 185.2c Cash earnings per Ordinary Share 352.1c 292.5c GROUP BALANCE SHEETAs at 31st December 2006 2006 2005ASSETS euro m euro mNon-current assetsProperty, plant and equipment 7,479.5 6,823.5Intangible assets 2,966.0 2,252.5Investments in associates 554.3 527.6Other financial assets 96.5 106.9Derivative financial instruments 74.0 154.8Deferred income tax assets 489.2 466.5Total non-current assets 11,659.5 10,331.8Current assetsInventories 2,036.4 1,722.6Trade and other receivables 3,171.7 2,476.4Derivative financial instruments 5.3 30.7Liquid investments 370.5 342.5Cash and cash equivalents 1,101.6 1,148.6Total current assets 6,685.5 5,720.8Total assets 18,345.0 16,052.6EQUITYEquity share capital 184.5 182.3Preference share capital 1.2 1.2Treasury shares (14.4) -Share premium account 2,317.8 2,208.3Other reserves 52.1 37.4Foreign currency translation reserve (137.6) 233.5Retained income 4,658.9 3,532.7 7,062.5 6,195.4Minority interest 41.8 38.3Total equity 7,104.3 6,233.7LIABILITIESNon-current liabilitiesInterest-bearing loans and borrowings 5,312.9 4,524.5Derivative financial instruments 47.0 13.5Deferred income tax liabilities 1,301.2 1,184.5Trade and other payables 159.4 187.6Retirement benefit obligations 261.4 450.5Provisions for liabilities 320.0 223.0Capital grants 10.4 12.1Total non-current liabilities 7,412.3 6,595.7Current liabilitiesTrade and other payables 2,788.4 2,254.4Current income tax liabilities 215.7 271.5Interest-bearing loans and borrowings 645.4 582.3Derivative financial instruments 38.1 4.6Provisions for liabilities 140.8 110.4Total current liabilities 3,828.4 3,223.2Total liabilities 11,240.7 9,818.9Total equity and liabilities 18,345.0 16,052.6 GROUP CASH FLOW STATEMENTFor the year ended 31st December 2006 2006 2005Cash flows from operating activities euro m euro mProfit before tax 1,602.4 1,278.9Finance costs, net 252.1 159.1Group share of associates' profit after tax (47.2) (25.9)Profit on disposal of fixed assets (40.5) (19.8)Group operating profit 1,766.8 1,392.3Depreciation charge 663.7 555.8Share-based payment expense 16.0 13.9Amortisation of intangible assets 25.3 9.1Net movement on provisions 11.5 11.8Increase in working capital (132.0) (149.4)Amortisation of capital grants (2.0) (2.0)Other non-cash movements 8.4 2.9Cash generated from operations 2,357.7 1,834.4Interest paid (including finance leases) (252.7) (184.0)Income taxes paid: - Irish corporation tax (20.0) (13.3) - Overseas corporation tax (357.7) (246.2)Net cash inflow from operating activities 1,727.3 1,390.9Cash flows from investing activitiesInflowsProceeds from disposal of fixed assets 252.4 102.8Interest received 46.0 43.4Capital grants received 0.4 1.5Dividends received from associates 21.8 14.2 320.6 161.9OutflowsPurchase of property, plant and equipment (832.3) (652.1)Acquisition of subsidiaries and joint ventures (1,978.4) (808.3)Investments in and advances to associates (7.4) (298.9)Advances to joint ventures and purchase of trade (12.7) (7.7)investmentsDeferred and contingent acquisition consideration paid (73.5) (45.3) (2,904.3) (1,812.3)Net cash outflow from investing activities (2,583.7) (1,650.4)Cash flows from financing activitiesInflowsProceeds from issue of shares 87.2 39.5Shares issued to minority interests 3.1 0.3Increase in interest-bearing loans and borrowings 1,708.5 796.8Increase in finance lease liabilities 3.4 6.5 1,802.2 843.1OutflowsExpenses paid in respect of share issues - (0.2)Ordinary Shares purchased under Performance Share Plan (15.7) -Increase in liquid investments (34.1) (15.0)Repayment of interest-bearing loans and borrowings (656.0) (250.0)Repayment of finance lease liabilities (12.9) (12.9)Net cash movement in derivative financial instruments (29.8) (102.8)Dividends paid to equity holders of the Company (197.9) (164.2)Dividends paid to minority interests (11.9) (9.4) (958.3) (554.5)Net cash inflow from financing activities 843.9 288.6Change in cash and cash equivalents (12.5) 29.1Cash and cash equivalents at beginning of year 1,148.6 1,072.0Translation adjustment (34.5) 47.5Cash and cash equivalents at end of year 1,101.6 1,148.6 GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE 2006 2005 euro m euro mItems of income/(expense) recognised directly withinequity:Currency translation effects (371.1) 413.4Group defined benefit pension obligations: - Actuarial gain/(loss) 155.1 (86.1) - Movement in deferred tax asset (41.4) 21.7Movement in deferred tax asset on employee share schemes 26.7 12.3Gains/(losses) relating to cash flow hedges (2.4) 2.7Movement in deferred tax liability on cash flow hedges 0.4 (0.7)Net income/(expense) recognised directly within equity (232.7) 363.3Group profit for the financial year 1,224.2 1,006.3Total recognised income and expense for the year 991.5 1,369.6 Equity holders of the company 978.8 1,360.4Minority interest 12.7 9.2Total recognised income and expense for the year 991.5 1,369.6 GROUP STATEMENT OF CHANGES IN EQUITY 2006 2005 euro m euro mTotal equity at beginning of year 6,233.7 4,979.4Issue of shares: - Share option and participation schemes 87.2 39.5 - Issued in lieu of dividends 24.5 21.0 - Expenses in respect of share issues - (0.2)Treasury shares (15.7) -Share-based payment expense 16.0 13.9Dividends (222.4) (185.2)Movement in minority interest 3.5 4.1Items of income/(expense) recognised directly withinequity:Currency translation effects (371.1) 413.4Group defined benefit pension obligations 113.7 (64.4)Deferred tax asset on employee share schemes 26.7 12.3Cash flow hedges (2.0) 2.0Profit for the year attributable to equity holders 1,210.2 997.9Total equity at end of year 7,104.3 6,233.7 SUPPLEMENTARY INFORMATION 1 Basis of Preparation The financial information presented in this report has been prepared inaccordance with the Group's accounting policies under International FinancialReporting Standards as adopted by the EU (IFRS). The transition date forimplementation of IFRS by the Group was 1st January 2004. The Group's accounting policies under IFRS are based on the InternationalFinancial Reporting Standards and Interpretations issued by the InternationalAccounting Standards Board (IASB) and on International Accounting Standards(IAS) and Standing Interpretations Committee Interpretations approved by thepredecessor International Accounting Standards Committee that have beensubsequently authorised by the IASB and remain in effect. 2 Translation of Foreign Currencies This financial information is presented in euro. Results and cash flows ofsubsidiaries, joint ventures and associates based in non-euro countries havebeen translated into euro at average exchange rates for the period, and therelated balance sheets have been translated at the rates of exchange ruling atthe balance sheet date. Adjustments arising on translation of the results ofnon-euro subsidiaries, joint ventures and associates at average rates, and onrestatement of the opening net assets at closing rates, are dealt with in aseparate translation reserve within equity, net of differences on relatedcurrency borrowings. All other translation differences are taken to the incomestatement. Rates used for translation of results and balance sheets into eurowere as follows: Average Year ended 31st Decembereuro 1 = 2006 2005 2006 2005US Dollar 1.2556 1.2438 1.3170 1.1797Pound Sterling 0.6817 0.6838 0.6715 0.6853Polish Zloty 3.8959 4.0224 3.8310 3.8600Swiss Franc 1.5729 1.5483 1.6069 1.5551Canadian Dollar 1.4237 1.5082 1.5281 1.3725Argentine Peso 3.8623 3.6356 4.0373 3.5868Israeli Shekel 5.5928 5.5781 5.5623 5.4503 3 Key Components of 2006 Performance Operating Profit on Trading Finance Assoc. Pre-taxeuro million Revenue Profit disposals profit costs PAT profit 2005 as reported 14,449 1,392 20 1,412 (159) 26 1,279Exchange effects (54) (4) - (4) - - (4)2005 at 2006 rates 14,395 1,388 20 1,408 (159) 26 1,275Incremental impact in2006 of: - 2005 acquisitions 1,108 82 - 82 (40) 18 60 - 2006 acquisitions 1,907 108 - 108 (56) - 52Non-recurring items - (12) - (12) - - (12)Organic 1,327 201 20 221 3 3 2272006 as reported 18,737 1,767 40 1,807 (252) 47 1,602% change v. 2005 +30% +27% +25% 4 Analysis of Revenue, EBITDA and Operating Profit by Business 2006 2005 euro m % euro m %RevenueEurope Materials 2,966.9 15.8 2,646.2 18.3Europe Products 3,185.8 17.0 2,533.4 17.5Europe Distribution 2,786.0 14.9 2,192.9 15.2Americas Materials 4,778.3 25.5 3,164.7 21.9Americas Products 3,572.7 19.1 2,755.9 19.1Americas Distribution 1,447.7 7.7 1,156.2 8.0 18,737.4 100.0 14,449.3 100.0EBITDA *Europe Materials 564.3 23.0 506.0 25.9Europe Products ** 361.0 14.7 303.9 15.5Europe Distribution ** 209.6 8.5 155.4 7.9Americas Materials 695.1 28.3 493.0 25.2Americas Products 505.7 20.6 406.8 20.8Americas Distribution 120.1 4.9 92.1 4.7 2,455.8 100.0 1,957.2 100.0Operating profitEurope Materials 420.9 23.8 377.0 27.1Europe Products ** 221.1 12.5 175.6 12.6Europe Distribution ** 172.0 9.7 123.4 8.9Americas Materials 475.1 26.9 328.2 23.5Americas Products 374.5 21.2 307.6 22.1Americas Distribution 103.2 5.9 80.5 5.8 1,766.8 100.0 1,392.3 100.0Profit on disposal of fixed assetsEurope Materials 28.3 8.8Europe Products 2.5 1.8Europe Distribution 3.9 (0.8)Americas Materials 1.5 9.7Americas Products 2.9 (0.1)Americas Distribution 1.4 0.4 40.5 19.8Depreciation chargeEurope Materials 143.1 129.0Europe Products 134.1 126.8Europe Distribution 37.1 31.6Americas Materials 219.9 164.8Americas Products 116.3 93.4Americas Distribution 13.2 10.2 663.7 555.8Amortisation of intangible assetsEurope Materials 0.3 -Europe Products 5.8 1.5Europe Distribution 0.5 0.4Americas Materials 0.1 -Americas Products 14.9 5.8Americas Distribution 3.7 1.4 25.3 9.1 * EBITDA excludes profit on disposal of fixed assets and comprises groupoperating profit (earnings) before interest, tax, depreciation and amortisation. ** Segment results for Europe Products include the goodwill impairment lossof euro 50m relating to the Cementbouw bv joint venture in the Netherlands , andeuro 18.9m of the total gain of euro 37.7m arising on deconsolidation of certainpension schemes in the Netherlands . The remaining euro 18.8m of the gain hasbeen included in the segment profit for Europe Distribution. 5 Geographical Analysis of Revenue and Operating Profit 2006 2005 euro m % euro m %RevenueIreland * 1,250.9 6.7 1,164.1 8.1Benelux 2,628.4 14.0 2,468.6 17.1Rest of Europe 5,057.7 27.0 3,733.8 25.8Americas 9,800.4 52.3 7,082.8 49.0 18,737.4 100.0 14,449.3 100EBITDAIreland * 209.2 8.5 192.9 9.9Benelux 300.9 12.3 266.3 13.6Rest of Europe 624.1 25.4 505.3 25.8Americas 1,321.6 53.8 992.7 50.7 2,455.8 100.0 1,957.2 100Operating profitIreland * 157.4 8.9 148.4 10.7Benelux 218.4 12.3 186.2 13.3Rest of Europe 437.5 24.8 340.6 24.5Americas 953.5 54.0 717.1 51.5 1,766.8 100.0 1,392.3 100Profit on disposal of fixed assetsIreland * 23.2 8.1Benelux 3.3 0.4Rest of Europe 8.2 1.3Americas 5.8 10.0 40.5 19.8Depreciation chargeIreland * 51.6 44.5Benelux 80.9 78.9Rest of Europe 181.8 164.0Americas 349.4 268.4 663.7 555.8Amortisation of intangible assetsIreland * 0.2 -Benelux 1.6 1.2Rest of Europe 4.8 0.7Americas 18.7 7.2 25.3 9.1 \* Total island of Ireland * EBITDA excludes profit on disposal of fixed assets and comprises groupoperating profit (earnings) before interest, tax, depreciation and amortisation. ** Segment results for Benelux include the goodwill impairment loss of euro50m relating to the Cementbouw bv joint venture in the Netherlands , and a gainof euro 37.7m arising on deconsolidation of certain pension schemes in theNetherlands . 6 Proportionate Consolidation of Joint Ventures 2006 2005Group share of: euro m euro mRevenue 900.9 617.8Cost of sales (628.0) (392.8)Gross profit 272.9 225.0Operating costs (179.9) (143.6)Impairment of Cementbouw bv goodwill (50.0) -Operating profit 43.0 81.4Profit on disposal of fixed assets 4.7 0.8Profit before finance costs 47.7 82.2Finance costs (net) (16.4) (13.6)Profit before tax 31.3 68.6Income tax expense (18.2) (18.9)Group profit for the financial year 13.1 49.7 Depreciation 36.9 30.6 7 Earnings per Ordinary Share The computation of basic, diluted and cash earnings per share is set outbelow: 2006 2005 euro m euro mProfit attributable to equity holders of the Company 1,210.2 997.9Preference dividends paid (0.1) (0.1)Numerator for basic and diluted earnings per Ordinary Share 1,210.1 997.8Amortisation of intangibles 25.3 9.1Depreciation charge 663.7 555.8Numerator for cash earnings per Ordinary Share 1,899.1 1,562.7 Number of Number ofDenominator for basic earnings per Ordinary Share Shares SharesWeighted average number of shares (millions) in issue 539.4 534.3Effect of dilutive potential shares (share options) 4.7 4.4Denominator for diluted earnings per Ordinary Share 544.1 538.7 Earnings per Ordinary Share euro cent euro cent - basic 224.3 186.7c - diluted 222.4 185.2cCash earnings per Ordinary Share (i) 352.1 292.5c (i) Cash earnings per share, a non-GAAP financial measure, is presented herefor information as management believes it is a useful financial indicator of acompany's ability to generate cash from operations. 8 Net Debt and Finance Costs 2006 2005Net debt euro m euro mNon-current assetsDerivative financial instruments 74.0 154.8Current assetsDerivative financial instruments 5.3 30.7Liquid investments 370.5 342.5Cash and cash equivalents 1,101.6 1,148.6Non-current liabilitiesInterest-bearing loans and borrowings (5,312.9) (4,524.5)Derivative financial instruments (47.0) (13.5)Current liabilitiesInterest-bearing loans and borrowings (645.4) (582.3)Derivative financial instruments (38.1) (4.6)Total net debt (4,492.0) (3,448.3)Including Group share of joint ventures' net debt (247.9) (271.2) Finance costs (net)Net Group finance costs on interest-bearing cash and cash 233.7 153.8equivalents, loans and borrowingsNet pensions financing credit (12.1) (5.4)Charge to unwind discount on provisions/deferred consideration 27.4 15.6Net charge/(credit) re change in fair value of derivatives 3.1 (4.9)Total net finance costs 252.1 159.1Including Group share of joint ventures' net finance costs 16.4 13.6 9 Summarised Cash Flow The table below summarises the Group's cash flows for the years ended 31stDecember 2006 and 31st December 2005. 2006 2005Inflows euro m euro mProfit before tax 1,602 1,279Depreciation 664 556Amortisation of intangibles 25 9Proceeds from disposal of fixed assets 252 103Share issues 112 61 2,655 2,008OutflowsWorking capital movements 75 119Capital expenditure 832 652Acquisitions and investments 2,311 1,298Dividends 222 185Tax paid 378 260Other 69 19 3,887 2,533Net outflow (1,232) (525)Translation adjustment 188 (165)Increase in net debt (1,044) (690) 10 Other 2006 2005 EBITDA interest cover (times) 9.7 12.3EBIT interest cover (times) 7.0 8.8EBITDA = earnings before interest, tax, depreciation and amortisation, excluding profits on disposal EBIT = earnings before interest and tax, excluding excluding profits on disposalAverage shares in issue 539.4m 534.3mNet dividend per share (euro cent) 52.0c 39.0cDividend cover (Earnings per share/Dividend per share) 4.3x 4.8xDepreciation charge - subsidiaries (euro m) 626.8 525.2Depreciation charge - share of joint ventures (euro m) 36.9 30.6Amortisation of intangibles - subsidiaries (euro m) 25.3 9.1Amortisation of intangibles - share of joint ventures (euro m) - -Share-based payment expense (euro m) 16.0 13.9Income tax expense - Irish tax (euro m) 18.4 12.9Income tax expense - overseas tax (euro m) 309.6 217.6Income tax expense - deferred tax (euro m) 50.2 42.1Market capitalisation at year-end (euro m) 17,119.6 13,327.7Total equity at year-end (euro m) 7,104.3 6,233.7Net debt (euro m) 4,492.0 3,448.3Net debt as a percentage of total equity 63% 55%Net debt as a percentage of market capitalisation 26% 26% 11 Statutory Accounts The financial information presented in this report does not represent fullstatutory accounts. Full statutory accounts for the year ended 31st December2006 prepared in accordance with IFRS, upon which the Auditors have given anunqualified audit report, have not yet been filed with the Registrar ofCompanies. Full accounts for the year ended 31st December 2005, prepared inaccordance with IFRS and containing an unqualified audit report, have beendelivered to the Registrar of Companies. 12 Board Approval This results announcement was approved by the Board of Directors of CRH plc on5th March 2007. 13 Annual Report post-out and Annual General Meeting (AGM) The 2006 Annual Report is expected to be posted to shareholders on Wednesday,4th April 2007 together with details of the Scrip Dividend Offer in respect ofthe final 2006 dividend. The 2006 Annual Report will be available to the publicfrom Thursday 5th April 2007 at the Company's registered office. The Company'sAGM is scheduled to be held This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CRH