CRH PUBLIC LTD CO
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
CRH$94.81-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001628280-24-022452
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001628280-24-035823
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 216 current paragraphs.
92 unchanged; 56 reworded; 61 added; 24 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 14 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (61)
Current report
•Total revenues decreased 1% to $9.7 billion;
Current report
•Net income was $1.3 billion compared with $1.2 billion, an increase of $97 million, or 8%. Adjusted EBITDA*1 was $2.3 billion, an increase of $241 million, or 12%;
Current report
•Total revenues of $16.2 billion were flat;
Current report
•Net income was $1.4 billion compared with $1.2 billion, an increase of $242 million, or 20%. Adjusted EBITDA* was $2.7 billion, an increase of $300 million, or 13%;
Current report
•Net income margin was 8.8% compared with 7.3%, an increase of 150bps. Adjusted EBITDA margin* was 16.7%, an increase of 180bps on the prior year's half year Adjusted EBITDA margin* of 14.9%; and
Current report
•Basic EPS was $2.05 compared to $1.57.
Current report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.1
Current report
In the three months ended June 30, 2024, CRH completed eight acquisitions for a total consideration of $0.4 billion, compared with $nil million in the same period of 2023. Americas Materials Solutions completed five acquisitions, Europe Materials Solutions completed two acquisitions, while Americas Building Solutions completed one acquisition.
Current report
Overall, for the six months ended June 30, 2024, CRH completed 16 acquisitions for a total consideration of $2.6 billion, compared with $0.2 billion in the first half of the prior year. The largest acquisition, which was completed in the first quarter of 2024, was a portfolio of cement and readymixed concrete assets and operations in Texas by Americas Materials Solutions for a total consideration of $2.1 billion.
Current report
On July 1, 2024, CRH completed the acquisition of a majority stake in Adbri. Adbri is an attractive business with high-quality assets and leading market positions in Australia that complements CRH’s core competencies in cement, concrete and aggregates and creates additional opportunities for growth and development for CRH's existing Australian business.
Current report
With respect to divestitures, in the three months ended June 30, 2024, cash proceeds from divestitures and disposals from long-lived assets were $0.4 billion. The largest divestiture related to Americas Materials Solutions' disposal of certain cement, aggregates and readymixed concrete operations in Quebec, Canada.
Current report
We are pleased to announce that we are raising our previous guidance for 2024, reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity
Current report
Total revenues were $9.7 billion for the three months ended June 30, 2024, a decrease of $0.1 billion, or 1%, compared with the second quarter of 2023, as lower volumes, due to unfavorable weather in certain regions and divestitures, offset continued pricing progress and contributions from acquisitions.
Current report
In Europe Materials Solutions, total revenues decreased by 8%, with total revenues in Essential Materials finishing 13% behind the three months ended June 30, 2023, while Road Solutions' total revenues were 3% behind. In Europe Building Solutions total revenues decreased by 7%, with total revenues in Building & Infrastructure Solutions decreasing by 11%, while total revenues in Outdoor Living Solutions were 7% ahead.
Current report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.2
Current report
For the six months ended June 30, 2024, gross profit was $5.5 billion, an increase of $0.2 billion, or 4%, from the same period in 2023, with total revenues $0.1 billion ahead of the same period in 2023, while total cost of revenues decreased by 2%. The gross profit margin of 33.9% increased 140bps from 32.5% for the first half of the prior year. Total cost of revenues decreased primarily as a result of a 22% reduction in energy costs due to divestitures, reduced volumes and a decline in energy prices, as well as lower raw materials costs which decreased 4%. These cost decreases were partially offset by labor and subcontractor cost increases of 6% and 8%, respectively.
Current report
For the six months ended June 30, 2024, SG&A expenses were $3.7 billion, an increase of $0.1 billion, or 2%, from the comparable 2023 period. SG&A expenses increased primarily due to labor cost increases of 9% as a result of higher headcount from acquisitions, and wage inflation; partially offset by cost control actions and lower haulage costs which decreased 3% compared with 2023 due to lower volumes.
Current report
Gain on disposal of long-lived assets was $102 million for the three months ended June 30, 2024, an increase of $84 million compared with 2023, and $110 million for the six months ended June 30, 2024, an increase of $87 million. The increase mainly related to a sale of certain land assets in North America.
Current report
Income from equity method investments
Current report
Net income
Current report
Net income was $1.3 billion for the three months ended June 30, 2024, an increase of $97 million from the comparable period in 2023. This result was primarily driven by a higher gain on disposal of long-lived assets, along with higher gross profit and lower SG&A expenses which offset higher interest expenses and income tax expenses compared with the second quarter of 2023.
Current report
Net income attributable to CRH plc was $1.4 billion for the six months ended June 30, 2024, an increase of $242 million from the comparable period in 2023. The increase in net income attributable to CRH plc was driven by increased net income of $242 million. Basic EPS for the six months ended June 30, 2024, was $2.05, compared with $1.57 for the six months ended June 30, 2023.
Current report
Americas Materials Solutions 3
Current report
In Essential Materials, total revenues increased by 5% supported by pricing growth in both aggregates and cement, ahead by 12% and 8% respectively. Aggregates and cement volumes declined by 3% and 2%, respectively, impacted by adverse weather conditions and subdued new-build residential demand.
Current report
In Road Solutions, total revenues increased by 6% driven by improved pricing in all lines of business and continued funding support relating to the Infrastructure Investment and Jobs Act (IIJA). Paving and construction revenue increased by 8% with good growth in the South and West regions. Asphalt volumes and pricing increased by 1% and 4%, respectively, while readymixed concrete prices increased by 9%, offsetting a decline in volumes of 6%. Construction backlogs were ahead of the prior year supported by positive momentum in bidding activity.
Current report
Second quarter 2024 Adjusted EBITDA for Americas Materials Solutions of $1.2 billion was 28% ahead of the prior year as cost management, pricing initiatives and operational efficiencies along with a gain on certain land asset sales, mitigated the impact of higher labor and raw materials costs. Organic Adjusted EBITDA* was 25% ahead of the second quarter of 2023. Adjusted EBITDA margin increased by 460bps.
Current report
In Essential Materials, total revenues increased by 7%. Aggregates and cement pricing were ahead by 11% and 8%, respectively. Aggregates volumes increased 1% and cement volumes benefited from the impact from acquisitions, increasing 1% on the same period from the prior year. Weather negatively impacted revenues in the latter part of the half especially in Texas and the central United States.
Current report
3* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.
Current report
Americas Building Solutions
Current report
Americas Building Solutions reported a 1% decline in total revenues, impacted by lower activity levels due to subdued new-build residential demand and challenging weather conditions. Overall performance in the quarter was supported by pricing discipline and contributions from acquisitions. Organic total revenues* were 4% behind the second quarter of 2023.
Current report
In Building & Infrastructure Solutions, total revenues were in line with the prior year as good acquisition performance was offset by unfavorable weather in certain markets as well as the impact of lower new-build residential demand. The non-residential and infrastructure backdrop remains underpinned by significant IIJA funding.
Current report
In Outdoor Living Solutions, total revenues decreased by 2%, primarily due to the impact of adverse weather in the quarter, particularly in Texas and Central regions.
Current report
Second quarter 2024 Adjusted EBITDA for Americas Building Solutions was in line with the comparable period in 2023, 3% behind on an organic* basis. Solid growth in the water and energy end-markets as well as growth in higher margin products in Outdoor Living Solutions were offset by adverse weather impacts and project delays in the telecommunications sector. Adjusted EBITDA margin was 40bps ahead of the second quarter of 2023.
Current report
Americas Building Solutions 4
Current report
In the first six months of the year, Americas Building Solutions recorded total revenue in line with the prior year, driven by positive acquisition contribution and pricing discipline offset by subdued residential demand and negative weather impact. Organic total revenues* were 3% behind the first half of 2023.
Current report
In Building & Infrastructure Solutions, total revenues declined by 2% versus prior year impacted by adverse weather and lower residential activity.
Current report
First half 2024 Adjusted EBITDA for Americas Building Solutions was 1% ahead of the comparable period in 2023, 1% behind on an organic* basis, impacted by adverse weather and rising input costs particularly labor and subcontractor costs. Cost containment initiatives offset the impact of cost inflation and resulted in Adjusted EBITDA margin 30bps ahead of the first half of the prior year.
Current report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.4
Current report
Europe Materials Solutions 5
Current report
In Road Solutions, revenues declined by 3% compared with the second quarter of 2023. Asphalt volumes declined by 1%, with lower volumes in the United Kingdom and Ireland partially offset by higher volumes in Poland. Paving and construction revenues decreased by 8% driven by lower activity levels in the United Kingdom. Readymixed concrete volumes decreased by 2%, compared to the comparable period in 2023 with higher volumes in Central and Eastern Europe only partially offsetting lower volumes in Western Europe.
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Removed paragraphs (24)
Previous report
•Total revenues increased 2% to $6.5 billion;
Previous report
•Net income was $114 million compared with a net loss of $31 million. Adjusted EBITDA*1 was $445 million, an increase of $59 million, or 15%;
Previous report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 28 to 29.1
Previous report
CRH Form 10-Q 23
Previous report
In the three months ended March 31, 2024, CRH completed eight acquisitions for a total consideration of $2.2 billion, compared with $0.2 billion in the first quarter of 2023. The largest acquisition in the first quarter of 2024 was in our Americas Materials Solutions segment where the Company completed the acquisition of a portfolio of cement and readymixed concrete assets and operations in Texas for a total consideration of $2.1 billion. In addition, Americas Materials Solutions completed a further two acquisitions, Americas Building Solutions completed three acquisitions, and Europe Materials Solutions completed two acquisitions, for a total first quarter 2024 spend of $2.2 billion. On April 5, 2024, the Company also acquired a materials solutions business, including two hard rock quarries, in California. The acquisition represents an attractive entry point into California for Americas Materials Solutions, particularly due to its long-lived hard rock reserves and vertically integrated asphalt and readymixed concrete operations.
Previous report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 28 to 29.2
Previous report
Gain on disposal of long-lived assets was $8 million in the three months ended March 31, 2024, an increase of $3 million compared with 2023.
Previous report
Loss from equity method investments
Previous report
Net income (loss)
Previous report
In Essential Materials, total revenues increased by 12%. This reflects an 8% increase in aggregates pricing which was adversely impacted by geographic mix and a 9% increase in cement pricing. Aggregates volumes increased by 8% and cement volumes increased by 6%, due to favorable weather in the West and Great Lakes regions which enabled early commencement of projects, together with the positive impact from acquisitions.
Previous report
Americas Building Solutions 3
Previous report
Americas Building Solutions recorded total revenues growth of 2%, driven by positive acquisition performance and increased pricing. Organic total revenues* were in line with the first quarter of 2023.
Previous report
In Building & Infrastructure Solutions, total revenues declined by 4% due to unfavorable weather in certain markets as well as the impact of subdued residential demand which negatively impacted activity levels. The non-residential and infrastructure construction backdrop remains supported through increased funding for critical water, energy and telecommunications infrastructure.
Previous report
First quarter 2024 Adjusted EBITDA for Americas Building Solutions was 2% ahead of the comparable period in 2023, 1% ahead on an organic* basis, driven by higher pricing and cost containment initiatives which offset the impact of lower volumes and cost inflation, particularly in labor. As a result, Adjusted EBITDA margin was 10bps ahead of the first quarter of 2023.
Previous report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 28 to 29.3
Previous report
1 Not meaningful.
Previous report
In Road Solutions, pricing progress was offset by reduced volumes due to adverse weather which resulted in total revenues being 5% behind the 2023 comparable period. Asphalt pricing increased by 1%, while volumes declined by 9%. Paving and construction revenues decreased by 3%. Readymixed concrete pricing was in line with the first quarter of 2023, while volumes decreased by 13%.
Previous report
Total revenues in Europe Building Solutions declined by 10%, or 12% on an organic* basis, versus the first quarter of 2023, with subdued new-build residential activity continuing in the first quarter of 2024.
Previous report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 28 to 29.4
Previous report
Total short and long-term debt was $12.7 billion at March 31, 2024, compared with $11.6 billion at year-end 2023, and $9.8 billion at March 31, 2023. In the three months ended March 31, 2024, $1.8 billion of commercial paper was issued across the U.S. Dollar and Euro Commercial Paper Programs. In January 2024, €600 million of euro-denominated notes were repaid on maturity. Net Debt* at March 31, 2024, was $9.6 billion, compared with $5.4 billion at December 31, 2023, and $5.3 billion at March 31, 2023. The increase in Net Debt*5 compared with December 31, 2023, reflects outflows from operating activities, the significant acquisition of a portfolio of cement and readymixed concrete assets and operations in Texas, cash returns to shareholders through dividends and continued share buybacks, and the purchase of property, plant and equipment, partially offset by proceeds from the completed divestiture of phases one and two of the European Lime operations.
Previous report
The seasonal impact on the Company’s operations disproportionately negatively impacts the quarterly operating cash flow results when compared with the full year. Net cash used in operating activities was $0.7 billion for the three months ended March 31, 2024, broadly in line with the same period in 2023. The increase in net cash used in operating activities was primarily due to adjustments relating to gains on disposals from businesses and long-lived assets and deferred tax, offsetting an increase in net income of $0.1 billion and lower outflows related to working capital.
Previous report
Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 28 to 29.5
Previous report
As of March 31, 2024, CRH plc (the ‘Guarantor’) has fully and unconditionally guaranteed registered debt securities issued by CRH America, Inc. (the ‘Issuer’), comprising U.S. $300 million 6.40% Notes due 2033 – listed on NYSE (i) (the ‘Notes’).
Previous report
CRH America, Inc. is 100% owned by CRH plc. The Notes are fully and unconditionally guaranteed by CRH plc as defined in the indenture governing the Notes.
Reworded paragraphs (56)
Previous wording
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three months ended March 31, 2024. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report.
Current wording
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and six months ended June 30, 2024. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report.
Previous wording
Operating in 28 countries, the Company has market leadership positions in North America and Europe. The United States is expected to be a key driver of future growth for CRH due to continued economic expansion, a growing population and significant public investment in construction. Our European business, which benefits from strong economic and construction growth prospects across Central and Eastern Europe as well as recurring repair and remodel demand in Western Europe, is an important strategic part of the Company and CRH intends to continue to expand its operations across the region. In both geographies there is significant government support for infrastructure and increasing demand for integrated solutions in major infrastructure and commercial projects.
Current wording
Operating in 28 countries, the Company has market leadership positions in North America and Europe. The United States is expected to be a key driver of future growth for CRH due to continued economic expansion, a growing population and significant public investment in construction. Our European business benefits from strong economic and construction growth prospects across Central and Eastern Europe as well as recurring repair and remodel demand in Western Europe. In both geographies there is significant government support for infrastructure and increasing demand for integrated solutions in major infrastructure and commercial projects.
Previous wording
Activity in the construction industry is dependent to a considerable extent on the seasonal impact of weather on the Company’s operating locations, with periods of higher activity in some markets during spring and summer which may reduce significantly in winter due to inclement weather. In addition to impacting demand for our products and services, adverse weather can negatively impact the production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures and heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year.
Current wording
Activity in the construction industry is dependent to a considerable extent on the seasonal impact of weather on the Company’s operating locations, with periods of higher activity in some markets during spring and summer which may reduce significantly in winter due to inclement weather. In addition to impacting demand for our products and services, adverse weather can negatively impact the production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures, heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year.
Previous wording
CRH delivered a stronger first quarter performance compared to the first quarter of 2023, resulting in the following performance highlights for the three months ended March 31, 2024 (comparisons are versus the prior year's first quarter unless otherwise noted):
Current wording
CRH delivered a strong second quarter performance compared to the second quarter of 2023, resulting in the following performance highlights for the three months ended June 30, 2024 (comparisons are versus the prior year's second quarter unless otherwise noted):
Previous wording
•Net income margin was 1.7% compared with a net loss margin of 0.5%. Adjusted EBITDA margin* was 6.8%, an increase of 80 basis points (bps) on the prior year's first quarter Adjusted EBITDA margin* of 6.0%; and
Current wording
•Net income margin was 13.6% compared with 12.5%, an increase of 110 basis points (bps). Adjusted EBITDA margin* was 23.4%, an increase of 270bps on the prior year's second quarter Adjusted EBITDA margin* of 20.7%; and
Previous wording
•Basic Earnings Per Share (EPS) was $0.16 compared to a loss per share of $0.05.
Current wording
•Basic Earnings Per Share (EPS) was $1.89 compared to $1.63.
Previous wording
•Cash paid to shareholders through dividends was $0.8 billion, compared with $nil in the prior year first quarter. CRH transitioned to quarterly dividends during the first quarter of 2024, with a quarterly dividend of $0.35 per share declared in February 2024, and a second quarterly dividend of $0.35 per share, representing an annualized increase of 5% on the prior year, announced on May 10, 2024;
Current wording
•Cash paid to shareholders through dividends was $1.2 billion, compared with $0.8 billion in the first half of the prior year. CRH transitioned to quarterly dividends during the first quarter of 2024, with a quarterly dividend of $0.35 per share declared in February 2024, a second quarterly dividend of $0.35 per share declared in May 2024, and a third quarterly dividend of $0.35 per share announced on August 8, 2024, representing an annualized increase of 5% on the prior year;
Previous wording
•Cash returned to shareholders through share buybacks was $0.4 billion, an increase of $0.1 billion versus the prior year first quarter. On May 9, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date cash returned to $0.6 billion. A further tranche has been announced, extending the ongoing share buyback program by an additional $0.3 billion tranche to be completed no later than August 7, 2024; and
Current wording
•Cash returned to shareholders through share buybacks was $0.7 billion, a decrease of $0.2 billion versus the first half of the prior year. On August 7, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date cash returned to $0.9 billion. A further tranche has been announced, extending the ongoing share buyback program by an additional $0.3 billion to be completed no later than November 6, 2024; and
Previous wording
•Eight acquisitions were completed for total consideration of $2.2 billion, compared with $0.2 billion in the first quarter of the prior year. A further $0.5 billion was invested in development and replacement capital expenditure projects, compared with $0.3 billion for the comparable 2023 period.
Current wording
•16 acquisitions were completed for total consideration of $2.6 billion, compared with $0.2 billion in the first half of the prior year. A further $1.1 billion was invested in development and replacement capital expenditure projects, compared with $0.8 billion for the comparable 2023 period.
Previous wording
With respect to divestitures, CRH realized proceeds from divestitures and disposals of long-lived assets of $0.7 billion, primarily related to the completed divestiture of phases one and two of its European Lime operations. The Lime transaction was structured in three phases with two phases of the divestiture, comprising CRH’s Lime operations in Germany, Czech Republic, Ireland and the United Kingdom, completed in the three months ended March 31, 2024. The remaining phase, consisting of operations in Poland, is expected to complete in the second half of 2024. In the prior year, no divestitures occurred in the first quarter.
Current wording
For the six months ended June 30, 2024, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.1 billion, primarily related to the divestiture of phases one and two of the European Lime operations which completed in Q1 2024. The remaining phase, consisting of Lime operations in Poland, is expected to complete in the second half of 2024. No divestitures occurred in the first half of the prior year.
Previous wording
The Company expects a favorable market backdrop and continued positive pricing momentum in 2024. Our operations in North America are expected to benefit from significant infrastructure activity in our markets and increased investment in key non-residential segments, while in Europe, we expect good underlying demand in infrastructure and key non-residential markets, further supported by disciplined cost control. Residential construction, particularly new-build activity, is expected to remain subdued across our markets in the near-term. Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned for another year of growth in 2024.
Current wording
Our operations in North America are expected to benefit from significant infrastructure activity and increased investment in key non-residential segments, while in Europe, we expect good underlying demand in infrastructure and key non-residential markets, further supported by disciplined cost control. Residential construction, particularly new-build activity, is expected to remain subdued across our markets in the near term. Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned to deliver another record year in 2024.
Previous wording
In Americas Materials Solutions total revenues increased by 16%, with total revenues in Essential Materials and Road Solutions increasing by 12% and 19%, respectively. In Americas Building Solutions total revenues increased by 2%, with total revenues in Building & Infrastructure Solutions decreasing by 4% and total revenues in Outdoor Living Solutions increasing by 5%.
Current wording
In Americas Materials Solutions, total revenues increased by 6%, with total revenues in Essential Materials and Road Solutions increasing by 5% and 6%, respectively. In Americas Building Solutions total revenues decreased by 1%, with total revenues in Building & Infrastructure Solutions in line and total revenues in Outdoor Living Solutions decreasing by 2%.
Previous wording
Total revenues were $6.5 billion for the three months ended March 31, 2024, an increase of $0.1 billion, or 2%, compared with the first quarter of 2023, reflecting continued pricing progress and contributions from acquisitions offsetting lower volumes in Europe in the seasonally least significant quarter for the Company.
Current wording
For the six months ended June 30, 2024, total revenues were $16.2 billion, an increase of $0.1 billion from the first six months of 2023, reflecting continued pricing progress and contributions from acquisitions which offset lower volumes and the divestiture of the Lime operations.
Previous wording
In Europe Materials Solutions total revenues decreased by 8%, with total revenues in Essential Materials finishing 10% behind the three months ended March 31, 2023, while Road Solutions total revenues were 5% behind. In Europe Building Solutions total revenues decreased by 10%, with total revenues in Building & Infrastructure Solutions decreasing by 12%, while total revenues in Outdoor Living Solutions were 2% ahead.
Current wording
In Europe Materials Solutions, total revenues decreased by 8%, with total revenues in Essential Materials finishing 11% behind the six months ended June 30, 2023, while Road Solutions' total revenues were 4% behind. In Europe Building Solutions total revenues decreased by 8%, with total revenues in Building & Infrastructure Solutions decreasing by 12%, while total revenues in Outdoor Living Solutions were 5% ahead.
Previous wording
For additional discussion on segment revenues, see “Segments” section on pages 26 to 27.
Current wording
For additional discussion on segment revenues, see “Segments” section on pages 28 to 31.
Previous wording
Gross profit for the three months ended March 31, 2024, was $1.8 billion, an increase of $0.2 billion, or 12%, from the same period in 2023, reflecting total revenues growth of 2%, with total cost of revenues decreasing by 2%. The gross profit margin of 27.7% increased 250bps from 25.2% for the first quarter of the prior year. Total cost of revenues decreased primarily as a result of energy costs decreasing 26% due to the impact of divestitures, lower volumes and a decline in energy prices, and lower volumes resulting in raw material costs reducing 5%. These cost decreases were partially offset by labor and subcontractor costs increases of 5% and 12%, respectively.
Current wording
Gross profit for the three months ended June 30, 2024, was $3.7 billion, an increase of $45 million, or 1%, from the same period in 2023, reflecting total revenues decline of 1%, while total cost of revenues decreased by 2%. The gross profit margin of 38.1% increased 70bps from 37.4% for the second quarter of the prior year. Total costof revenues decreased primarily as a result of a 19% reduction in energy costs due to divestitures, reduced volumes and a decline in energy prices, as well as lower raw materials costs which decreased 2%. These cost decreases were partially offset by labor and subcontractor cost increases of 6% and 5%, respectively.
Previous wording
Selling, general and administrative (SG&A) expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administration expenses, were $1.8 billion in the first quarter of 2024, an increase of $0.2 billion, or 10%, from the comparable 2023 period. The increase in SG&A expenses primarily reflects labor cost increases of 12%, as a result of increased headcount and wage inflation; partially offset by lower haulage costs which decreased 3% compared with 2023 as a result of lower volumes.
Current wording
Selling, general and administrative (SG&A) expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administration expenses, were $1.9 billion for the three months ended June 30, 2024, a decrease of $0.1 billion, or 4%, from the comparable 2023 period. SG&A expenses decreased mainly due to cost control actions and a 3% reduction in haulage costs from lower volumes. These decreases were partly offset by a 7% increase in labor costs due to higher headcount from acquisitions and wage inflation.
Previous wording
Interest income was $43 million for the three months ended March 31, 2024, an increase of $3 million on the comparable period in 2023.
Current wording
Interest income was $36 million for the three months ended June 30, 2024, in line with the comparable period in 2023 and $79 million for the six months ended June 30, 2024, an increase of $3 million on the comparable period in 2023.
Previous wording
Interest expense was $133 million in the three months ended March 31, 2024, an increase of $52 million from the comparable period in 2023. The increase was primarily due to an increase in gross debt balances and higher interest rates on new debt issued.
Current wording
Interest expense was $155 million in the three months ended June 30, 2024, an increase of $82 million from the comparable period in 2023 and $288 million for the six months ended June 30, 2024, an increase of $134 million from the prior period. The increase was primarily due to an increase in gross debt balances and higher interest rates on new debt issued.
Previous wording
Other nonoperating income, net, was $161 million in the three months ended March 31, 2024, compared with $nil in the comparable period for 2023. Other nonoperating income, net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The increase in other nonoperating income, net was primarily related to gains on the completed divestiture of phases one and two of the European Lime operations, and unrealized gains on certain investments.
Current wording
Other nonoperating income, net, was $23 million for the three months ended June 30, 2024, compared with $2 million in the comparable period for 2023. Other nonoperating income, net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The increase in other nonoperating income, net was primarily related to gains on certain divestitures.
Previous wording
In the three months ended March 31, 2024, the Company had an income tax benefit of $19 million, compared to $14 million for the comparable period in 2023. The effective tax rate was (19)% for the first quarter in 2024 compared with an effective tax rate of 36% for the first quarter in 2023. The movement in the effective tax rate was primarily driven by the impact of the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations.
Current wording
For the six months ended June 30, 2024, the Company had an income tax expense of $411 million compared to $365 million for the comparable period in 2023. The effective tax rate was 22% for the first half of 2024 compared with an effective tax rate of 24% for the same period in 2023. The movement in the effective tax rate was primarily due to the offset of items arising in the first quarter including the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations.
Previous wording
In the three months ended March 31, 2024, a loss of $4 million was recorded in equity method investments, a decrease of $2 million from the comparable period in 2023.
Current wording
For the three months ended June 30, 2024, a gain of $6 million was recorded in equity method investments, a decrease of $7 million from the comparable period in 2023 and a gain of $2 million was recorded for the six months ended June 30, 2024, a decrease of $5 million from the comparable period in 2023.
Previous wording
Net income was $114 million for the three months ended March 31, 2024, an increase of $145 million from the comparable period in 2023. This result was primarily driven by higher gross profit and other nonoperating income, net, which offset higher SG&A and interest expenses compared with the first quarter of 2023.
Current wording
Net income was $1.4 billion for the six months ended June 30, 2024, an increase of $242 million from the comparable period in 2023, primarily driven by higher gross profit, gain on disposal of long-lived assets and other nonoperating income, net, which offset higher SG&A expenses and interest expenses compared with the same period of 2023.
Previous wording
Net income (loss) attributable to CRH plc and earnings per share
Current wording
Net income attributable to CRH plc and earnings per share
Previous wording
Net income attributable to CRH plc was $116 million for the three months ended March 31, 2024, an increase of $144 million from the comparable period in 2023. The increase in net income attributable to CRH plc was driven by increased net income of $145 million and a decreased net loss attributable to noncontrolling interests of $1 million. Basic EPS for the three months ended March 31, 2024, was $0.16, compared with a loss per share of $0.05 for the three months ended March 31, 2023.
Current wording
Net income attributable to CRH plc was $1.3 billion for the three months ended June 30, 2024, an increase of $98 million from the comparable period in 2023. The increase in net income attributable to CRH plc was driven by increased net income of $97 million and a decrease of $1 million in net income attributable to noncontrolling interests. Basic EPS for the three months ended June 30, 2024, was $1.89, compared with $1.63 for the three months ended June 30, 2023.
Previous wording
Americas Materials Solutions’ total revenues were 16% ahead of the first quarter of 2023 in a seasonally small quarter, driven primarily by price increases, higher volumes across all lines of business and a positive contribution from acquisitions, including the acquisition of cement and readymixed concrete assets in Texas which closed in early February 2024. Organic total revenues* were 13% ahead.
Current wording
Americas Materials Solutions’ total revenues, including the acquisition of cement and readymixed concrete assets in Texas which closed in February 2024, were 6% ahead of the second quarter of 2023. Organic total revenues* were 4% ahead driven by price increases across all lines of business.
Previous wording
In Road Solutions, total revenues increased by 19% driven by higher pricing and increased activity levels through continued funding support relating to the Infrastructure Investment and Jobs Act. Asphalt prices increased by 5% while volumes were 11% ahead of the comparable period in 2023 due to favorable weather in key regions and early-season project activity. Paving and construction revenues for the first quarter of 2024 increased by 20%. Readymixed concrete pricing was 8% higher than the first quarter of 2023, while volumes were 9% ahead. We have seen continued positive momentum in bidding activity, with construction backlogs ahead of the prior year comparable period.
Current wording
In Road Solutions, total revenues increased by 10% driven by higher pricing and sustained activity levels through continued funding support relating to the IIJA. Asphalt prices increased by 4% while volumes were 2% ahead of the comparable period in 2023 due to early-season project activity. Paving and construction revenues increased 11% on the same period in the prior year. Readymixed concrete pricing was 9% higher than the first half of the prior year, while volumes were flat. We have seen continued momentum in bidding activity, with construction backlogs ahead of the prior year comparable period.
Previous wording
First quarter 2024 Adjusted EBITDA for Americas Materials Solutions of $15 million was ahead of the first quarter of 2023 as increased pricing and operational efficiencies mitigated the impact of higher labor, subcontractor and raw materials costs. Organic Adjusted EBITDA* was ahead of the first quarter of 2023. Adjusted EBITDA margin increased by 250bps.
Current wording
First half 2024 Adjusted EBITDA for Americas Materials Solutions of $1.2 billion was ahead of the first half of the prior year as increased pricing and operational efficiencies along with a gain on certain land asset sales mitigated the impact of higher labor, subcontractor and raw materials costs. Organic Adjusted EBITDA* was 28% ahead of the first six months of 2023. Adjusted EBITDA margin increased by 340bps.
Previous wording
In Outdoor Living Solutions, total revenues increased by 5%, with growth across most regions, driven by strong sales into the retail channel, particularly in lawn and garden products, along with increased demand in the professional business channel.
Current wording
In Outdoor Living Solutions, total revenues increased by 1%, with growth across most regions, driven by strong sales into the retail channel, particularly in lawn and garden products and fencing, decking and railing businesses.
Previous wording
Total revenues in Europe Materials Solutions declined by 8%, or 5% on an organic*4 basis, driven by lower volumes across Western Europe, partly offset by volume growth in Central and Eastern Europe and continued pricing progress.
Current wording
Total revenues in Europe Materials Solutions declined by 8%, or 5% on an organic* basis, as good volume growth in Central and Eastern Europe and continued pricing progress was more than offset by lower activity levels in Western Europe due to subdued conditions in certain markets and adverse weather in the quarter.
Previous wording
In Essential Materials, total revenues were 10% behind the comparable period in 2023 due to the completed divestiture of phases one and two of our European Lime operations and lower volumes. Aggregates pricing was 3% ahead and overall cement pricing, which was adversely impacted by geographic mix, was in line with the first quarter of 2023, or 2% ahead excluding the Philippines. Aggregates volumes declined by 6% while cement volumes were 2% behind due to lower activity levels, particularly in Western Europe which was impacted by unfavorable weather in several key markets. This was partly offset by volume growth in Central and Eastern Europe.
Current wording
In Essential Materials, total revenues declined by 13% compared with the second quarter of 2023, impacted by the completed divestiture of phases one and two of the European Lime operations. Aggregates volumes were 1% behind the comparable period in 2023 while cement volumes were 2% behind due to lower activity levels, particularly in Western Europe and the Philippines, partly offset by good volume growth in Central and Eastern Europe. Aggregates pricing was 3% ahead and overall cement pricing, which was adversely impacted by geographic mix, was also 1% ahead of the second quarter of 2023.
Previous wording
Adjusted EBITDA in Europe Materials Solutions was $90 million, 32% ahead of the comparable period in 2023, and 59% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 140bps compared with the first quarter of 2023.
Current wording
Adjusted EBITDA in Europe Materials Solutions for the second quarter of 2024 was $499 million, 2% ahead of the comparable period in 2023 on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 110bps compared with the second quarter of 2023.
Previous wording
Revenues in Outdoor Living Solutions were 2% ahead of the comparable period in 2023 through pricing increases, however volumes were impacted by prolonged winter weather in certain key markets.
Current wording
Revenues in Outdoor Living Solutions were 7% ahead of the comparable period in 2023 with increased activity in the second quarter following prolonged winter weather in certain key markets earlier in the year.
Previous wording
Within Building & Infrastructure Solutions, total revenues declined by 12% compared with the first quarter of 2023. Infrastructure Products revenues increased, benefiting from acquisitions offsetting lower activity levels and project delays in key markets. Revenues in Precast and Construction Accessories were negatively impacted by adverse weather conditions and muted new-build residential activity in several markets.
Current wording
Within Building & Infrastructure Solutions, total revenues were 12% behind the comparable period in 2023. Infrastructure Products revenues increased, benefiting from acquisitions offsetting lower activity levels. Revenues in Precast and Construction Accessories were negatively impacted by subdued new-build residential activity continuing across several markets, with the adverse weather conditions experienced in the first quarter impacting the overall performance.
Previous wording
Adjusted EBITDA in Europe Building Solutions declined by 38% versus the comparable prior year period, a 40% decrease on an organic* basis. Organic volume declines were partially offset by disciplined commercial management, cost saving initiatives and lower raw materials costs. Adjusted EBITDA margin decreased by 240bps compared with the first quarter of 2023.
Current wording
Adjusted EBITDA for the first six months of the year in Europe Building Solutions was 16% behind the comparable period of 2023. Adjusted EBITDA margin decreased by 80bps compared with the first six months of 2023, with lower sales only partially offset by disciplined commercial management and cost saving initiatives.
Previous wording
Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total consideration spent on acquisitions and investments of $2.2 billion in the three months ended March 31, 2024, compared with $0.2 billion for the same period in 2023. Acquisitions completed in 2023 and the first quarter of 2024 contributed incremental total revenues of $140 million and Adjusted EBITDA of $35 million for the three months ended March 31, 2024. Cash proceeds from divestitures and disposals of long-lived assets amounted to $0.7 billion for the three months ended March 31, 2024, compared with $6 million for the three months ended March 31, 2023. The total revenues impact of divestitures was a negative $(117) million and the impact at an Adjusted EBITDA level was a negative $(24) million.
Current wording
Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total spend on acquisitions and investments of $2.5 billion in the six months ended June 30, 2024, compared with $0.2 billion for the same period in 2023. Acquisitions completed in 2023 and the first half of 2024 contributed incremental total revenues of $232 million and Adjusted EBITDA of $61 million for the three months ended June 30, 2024 and total revenues of $372 million and Adjusted EBITDA of $96 million for the six months ended June 30, 2024. Cash proceeds from divestitures and disposals of long-lived assets amounted to $1.1 billion for the six months ended June 30, 2024, compared with $42 million for the six months ended June 30, 2023. The total revenues impact of divestitures was a negative $164 million and the impact at an Adjusted EBITDA level was a negative $46 million for the three months ended June 30, 2024. For the six months ended June 30, 2024, the total revenues impact of divestitures was a negative $281 million and the impact at an Adjusted EBITDA level was a negative $70 million.
Previous wording
Organic revenue and organic Adjusted EBITDA are arrived at by excluding the incremental revenue and Adjusted EBITDA contributions from current and prior year acquisitions and divestitures, the impact of exchange translation, and the impact of any one-off items. In the Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section on pages 26 and 27, changes in organic revenue and organic Adjusted EBITDA are presented as additional measures of revenue and Adjusted EBITDA to provide a greater understanding of the performance of the Company. Organic change % is calculated by expressing the organic movement as a percentage of the prior year reporting period (adjusted for currency exchange effects). A reconciliation of the changes in organic revenue and organic Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA by segment, is presented with the discussion within each segment’s performance in tables contained in the segment discussion in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” commencing on page 23.
Current wording
Organic revenue and organic Adjusted EBITDA are arrived at by excluding the incremental revenue and Adjusted EBITDA contributions from current and prior year acquisitions and divestitures, the impact of exchange translation, and the impact of any one-off items. In Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section on pages 28 to 31, changes in organic revenue and organic Adjusted EBITDA are presented as additional measures of revenue and Adjusted EBITDA to provide a greater understanding of the performance of the Company. Organic change % is calculated by expressing the organic movement as a percentage of the prior year reporting period (adjusted for currency exchange effects). A reconciliation of the changes in organic revenue and organic Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA by segment, is presented with the discussion within each segment’s performance in tables contained in the segment discussion in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” commencing on page 24.
Previous wording
CRH continued its ongoing share buyback program in the first quarter of 2024 repurchasing approximately five million ordinary shares for a total consideration of $0.4 billion and the Company is commencing an additional $0.3 billion tranche to be completed no later than August 7, 2024. The Company also made cash dividend payments of $0.8 billion in the first quarter of 2024.
Current wording
CRH continued its ongoing share buyback program in the first six months of 2024 repurchasing approximately 9.4 million ordinary shares for a total consideration of $0.7 billion and the Company is commencing an additional $0.3 billion tranche to be completed no later than November 6, 2024. The Company also made cash dividend payments of $1.2 billion in the first six months of 2024.
Previous wording
Other than items updated in this Quarterly Report, the nature and composition of the Company’s material cash requirements, which include debt service and related interest payments, operating lease obligations, share repurchase commitments and other purchase obligations arising in the normal course of business, have not materially changed from those disclosed in the 2023 Form 10-K.
Current wording
Other than items updated in this Quarterly Report, CRH's financial condition and the nature and composition of the Company’s material cash requirements, which include debt service and related interest payments, operating lease obligations, share repurchase commitments and other purchase obligations arising in the normal course of business, have not materially changed from those disclosed in the 2023 Form 10-K.
Previous wording
At March 31, 2024, CRH had cash and cash equivalents of $3.3 billion compared with $4.7 billion at March 31, 2023.
Current wording
At June 30, 2024, CRH had cash and cash equivalents and restricted cash of $3.9 billion compared with $4.3 billion at June 30, 2023.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
CRH delivered a stronger performance in the six months ended June 30, 2024 compared to the prior year, resulting in the following performance highlights (comparisons are versus the prior year's first six months unless otherwise noted):
Current report — wording carried from elsewhere
In Americas Materials Solutions, total revenues increased by 9%, with total revenues in Essential Materials and Road Solutions increasing by 7% and 10%, respectively. In Americas Building Solutions total revenues were flat, with total revenues in Building & Infrastructure Solutions decreasing by 2% and total revenues in Outdoor Living Solutions increasing by 1%.
Current report — wording carried from elsewhere
Other nonoperating income, net, was $184 million for the six months ended June 30, 2024, compared with $2 million in the comparable period for 2023. The increase in other nonoperating income, net, was primarily related to gains on the completed divestiture of phases one and two of the European Lime operations and unrealized gains on certain investments.
Current report — wording carried from elsewhere
For the three months ended June 30, 2024, the Company had an income tax expense of $430 million, compared to $379 million for the comparable period in 2023. The effective tax rate was 25% for the second quarter in 2024 compared with an effective tax rate of 24% for the second quarter in 2023. The movement in the effective tax rate was primarily driven by a change in the mix of income earned in jurisdictions with a higher rate of tax.
Current report — wording carried from elsewhere
Americas Materials Solutions’ total revenues were 9% ahead in the first six months of the year as price increases, higher volumes across most lines of business and a positive contribution from acquisitions, including the acquisition of cement and readymixed concrete assets in Texas which closed in early February 2024, offset adverse weather. Organic total revenues* were 7% ahead.
Current report — wording carried from elsewhere
Within Building & Infrastructure Solutions, total revenues declined by 11% compared with the second quarter of 2023. Infrastructure Products revenues increased, as contributions from acquisitions more than offset lower activity levels. Revenues in Precast and Construction Accessories were negatively impacted by subdued demand in key markets.
Current report — wording carried from elsewhere
Total lease liabilities were $1.5 billion compared with $1.3 billion at June 30, 2023.