Jump to content

CRH plc

From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Wikilyd (talk | contribs) at 10:10, 22 November 2019. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

CRH plc
Company typePublic limited company
Template:Ise
LSE: CRH
NYSE: CRH
FTSE 100 Component
IndustryBuilding materials
FoundedCement Limited (1936), Roadstone Limited (1949) & merger to form Cement Roadstone Holdings (1970)
HeadquartersDublin, Ireland
Key people
Nicky Hartery, (Chairman)
Albert Manifold, (CEO)
ProductsCement, aggregates, readymixed concrete, asphalt/bitumen and agricultural and/or chemical lime
Revenue€26,790 million (2018)[1]
€2,177 million (2018)[1]
€2,521 million (2018)[1]
Number of employees
85,000 (2019)[2]
Websitewww.crh.ie

CRH plc is an international group of diversified building materials businesses which manufacture and supply a wide range of products for the construction industry. The company was established and incorporated and is currently domiciled and managed in Ireland where it ranks as the largest Irish company.[3] CRH has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has secondary listings on the Irish Stock Exchange (where it is a constituent of the ISEQ 20) and New York Stock Exchange.

History

1970-1980s: Formation and listings

The company, whose name began as an abbreviation of Cement Roadstone Holdings, was formed through the merger in 1970 of Cement Ltd (established in 1936) and Roadstone Ltd (established in 1949).[4] According to Jonathan Guthrie of the Financial Times, it is pronounced “Cee Orr Haitch.”[5] The company went public on the Irish Stock Exchange in 1973.[6]

CRH entered the United States in 1978 by buying Amcor, a concrete products group in Utah which would then form the basis of the company's U.S. division, which is now called Oldcastle Inc. Subsequent large purchases in the US included Callanan Industries, a New York State based aggregates and asphalt producer in 1985.[7] In 1987, CRH was listed as a constituent of the FTSE 100 Index.[8]

1990s: Early Europe and US acquisitions

In the 1990s the company moved into France with a number of buys including Raboni SA, a builders merchant company and drainage systems and concrete vault manufacturing group Prefaest SA.[9]

In 1995, CRH made its first entry into new or emerging markets when it bought Holding Cement Polski, which later gained majority control of Cementownia Ozarow, one of the Poland's major cement producers.[10] That acquisition marked the first CRH cement manufacturing operation outside Ireland. By the end of the decade, CRH numbered more than a dozen operations in Poland and it has since invested in cement production in neighbouring Ukraine,[11] most recently with the announcement of an agreement to buy Mykolaiv Cement from rival Lafarge.[12] In 1999 CRH bought Finnsementti Oy, Finland's only cement producer, and Lohja Rudus Oy, Finland's top producer of aggregates and ready-mix concrete.[13]

In the 1990s, US acquisitions by CRH included Betco Block & Products Inc. of Bethesda, Maryland in 1990.[14] CRH acquired Balf Co. in Connecticut, Lebanon Rock in Pennsylvania, Keating in Massachusetts and Sullivan Lafarge in New York state in 1994.[15] It acquired Allied Building Products, which specialized in roofing and cladding products and Tilcon, a major road construction specialist in the Northeast United States in 1996.[16]

2000-2010: Later acquisitions

CRH global production sites in 2010.

The company entered Switzerland in 2000 with the EUR 425 million purchase of Jura Group, adding cement, concrete and aggregates operations, as well as a regional distribution network.[17] In the following year, CRH took an interest in Nesher Israel Cement Works, the only cement producer in that country, by taking a 25% stake in its holding company Mashav.[18] In July 2003 it agreed to pay EUR 693 million to acquire Cementbouw - a do-it-yourself store chain and building materials producer in the Netherlands.[19] In 2004 CRH paid €429m to purchase a 49 percent stake in Portuguese cement producer Secil. It sold that stake again in 2012 for €574m following a ruling on a shareholder dispute by an arbitration tribunal at the Paris-based International Chamber of Commerce.[20]

In the United States, CRH acquired Ohio's Shelly Group in 2000,[21] and CRH acquired Mount Hope Rock Products, based in New Jersey in 2002[22] and Ashland Paving And Construction (APAC) of Atlanta in 2006. APAC was the company's largest deal.[23] In 2007 CRH purchased four companies worth a total of $350 million (€251 million) to add to its US materials division: these companies are Conrad Yelvington Distributors Inc. (CYDI), Eugene Sand & Gravel, Cessford Construction and McMinn's Asphalt and Prospect Agrregates.[24] Also in 2008, CRH agreed to purchase a landscape paver, Pavestone, for $540 million.[25]

In 2006 CRH invested in a cement factory based in the Heilongjiang region in China.[26] It has built on that presence acquiring a 26% stake in the Jilin Yatai Group and an option to acquire 49% in the future.[27] In 2008 CRH agreed to buy a 50 percent stake in Indian cement company My Home Industries Ltd. for €290 million ($452 million).[28]

2011-2019: Americas and emerging markets

Cement transport wagon of the French subsidiary (EQIOM)

CRH confirmed in 2013 that it was interested in looking at other opportunities in India.[29] In 2015, CRH remained listed in both London and Dublin.[30] In February 2015, CRH agreed to purchase the UK building materials producer Lafarge Tarmac.[31] In 2015, CRH purchased US $6.5 billion of assets from the newly formed company LafargeHolcim. The acquisition almost tripled CRH's net debt, bringing it to €6.6 billion.[32] The LafargeHolcim acquisition made CRH "the world’s third-largest building materials group by market value." A week after CEO Albert Manifold announced that CRH was looking for large-scale acquisitions, in August 2015, CRH paid $1.3 billion for CR Laurence, a glazing company based in California.[30] At the time, CRH already had a similar business in North America called BuildingEnvelope, with 4,500 employees, which it said it would integrate with CRH.[30] By November 2015, CRH was getting about a fifth of its operating earnings from US infrastructure.[33]

In June 2016, the Financial Times reported that CRH earned twice as much profit from the Americas versus Europe.[34] As of November 2016, half the asphalt, aggregates and assorted material it sold went to the United States.[32] Headquartered in Dublin, CRH was the biggest producer of asphalt in the US and the third largest producer of ready-mixed concrete.[35] Sales for 2016 were €27.1 billion, an increase of 15 percent from the year before. Profit after tax was €1.3 billion.[8] In April 2017, the Irish Times noted that chief executive Albert Manifold’s package almost doubled in 2016 to €10 million, despite disagreement among shareholders the year before on pay.[36] As of April 27, 2017, CRH was Ireland's biggest company.[8][37] Chief executive was Albert Manifold. That quarter, sales were up in its three divisions in Europe, while the Americas materials unit had higher sales as well.[37] At the time, it did 65 percent of its business in the Americas, while the market in the Philippines proving to be "challenging," and weighing down performance in Asia.[38] On April 27, 2017, CRH held their annual general meeting in Dublin, at which point 17 percent of shareholders voted against the company's executive pay structure. The year prior, 40 percent had voted against. At the meeting, chairman Nick Hartery noted that share price in the company had increased 80 percent since 2014.[8] Also in April 2017, it was reported that CRH was expecting to make a large-scale acquisition in 2018. At the time, over the earlier part of the year CRH had spent €500 million on eight acquisitions.[39] In early May 2017, BlackRock increased its stake in CRH plc.[40]

Products

The company's products are as follows:

Products manufactured and/or sold by CRH companies
Heavyside materials Lightside products Distribution
  • Glass and glazing systems
  • Construction accessories
  • Shutters and Awnings
  • Perimeter protection products
  • Network access products
  • General builders merchants
  • Sanitary, heating and plumbing outlets
  • Do-It-Yourself (DIY) stores

Governance and operating structure

Headquarters and board

CRH is registered in Ireland and headquartered in Dublin, Ireland. It has a board of 11 members[41]

Two Directors are executives of the Group.

  • Albert Manifold, Chief Executive (Ireland)
  • Senan Murphy, Group Finance Director (Ireland)

Each of the nine remaining sits as a Non-Executive Director.

  • Nicky Hartery, Chairman (Ireland)
  • Patrick Kennedy (Ireland)
  • Heather Ann McSharry (Ireland)
  • Gillian Platt (Canada)
  • Lucinda Riches (UK)
  • Henk Rottinghuis (Netherlands)
  • Willian Teuber (US)
  • Donald A. McGovern, Jr., Senior Independent Director[42] (US)

Mark Towe (Chairman, CRH Americas) retired from the plc board on 31 December 2016.[43]

Structure and divisions

CRH is structured into four activities:[44]

  • Heavyside materials (including cement, aggregates, concrete)
  • Heavyside products (such as precast concrete products)
  • Lightside products (construction accessories, glass and glazing systems, fencing, among others)
  • Distribution (builders merchant chains such as Bauking in Germany)

The holding company for CRH's American operations is Oldcastle, Inc.

CRH's operating companies include:

  • Oldcastle APG
  • C.R. Laurence Co., Inc.
  • Oldcastle BuildingEnvelope
  • Oldcastle Infrastructure
  • Tarmac
  • Irish Cement
  • Roadstone
  • Rudus
  • HALFEN
  • Ancon
  • Cementbouw
  • Bauking
  • BMN Bouwmaterialen
  • Raboni
  • Eqiom
  • Tilcon
  • The Shelly Company
  • Polbruk

Financial performance

The following is a summary of financial data:[45]

€m 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Revenue 26,790 27,563 27,104 23,635 18,912 18,031 18,659 18,081 17,173 17,373 20,887 20,992 18,737 14,449 12,755
EBITDA 3,365 3,310 3,130 2,219 1,641 1,475 1,640 1,656 1,615 1,803 2,665 2,860 2,456 1,957 1,740
Depreciation 1,071 1,006 1,032 887 680 725 748 742 786 794 781 739 664 556 516
Amortisation 117 66 71 55 44 650 47 43 131 54 43 35 25 9 4
EBIT 2,177 2,238 2,027 1,277 917 100 845 871 698 955 1,841 2,086 1,767 1,392 1,220
Profit on Disposals (24) 59 55 101 77 26 230 55 55 26 69 57 40 20 11
Profit before Finance costs 2,153 2,297 2,082 1,378 994 126 1,075 926 753 981 1,910 2,143 1,807 1,412 1,231
Finance costs (net) (351) (349) (383) (389) (288) (297) (289) (257) (247) (297) (343) (303) (252) (159) (146)
Associates 60 65 42 44 55 (44) (112) 42 28 48 61 64 47 26 19
Profit Before Tax 1,862 2,013 1,741 1,033 761 (215) 674 711 534 732 1,628 1,904 1,602 1,279 1,104
Income Tax (426) (94) (471) (304) (177) (80) (120) (114) (95) (134) (366) (466) (378) (273) (232)
Profit after tax 1,436 1,919 1,270 729 584 (295) 554 597 439 598 1,262 1,438 1,224 1,006 872

References

  1. ^ a b c "Preliminary Results 2018" (PDF). CRH plc. Retrieved 3 March 2019.
  2. ^ "Our group". CRH plc. Retrieved 3 March 2019.
  3. ^ CRH on Top1000.ie Irish Times 2013
  4. ^ "CRH History Overview". crh.com. Retrieved 15 March 2015.
  5. ^ Guthrie, Jonathan (27 August 2015). "CRH options not Manifold in a downturn". Financial Times. Retrieved 13 May 2017.
  6. ^ "CRH plc". Irish Stock Exchange. Retrieved 20 March 2016.
  7. ^ Callanan Industries purchased by Oldcastle, Inc. Archived 15 January 2013 at the Wayback Machine Callanan.com
  8. ^ a b c d Duffy, Sean (28 April 2017). "CRH faces push back over €10m for CEO=". The Irish Independent. Ireland. Retrieved 13 May 2017.
  9. ^ CRH buys French builders merchants Archived 31 July 2013 at the Wayback Machine Europolitics 7 October 1998
  10. ^ CRH raises holding in Polish firm to 86.9pc Irish Independent 30 October 1998
  11. ^ International Cement Review. "CRH invests €210m in its Ukraine cement plant". cemnet.com. Retrieved 15 March 2015.
  12. ^ CRH buys Ukrainian cement firm for €96m from rival Irish Independent 27 April 2013
  13. ^ "Scancem sells Finnsementti and Lohja Rudus operations to CRH". News Powered by Cision. Retrieved 15 March 2015.
  14. ^ Irish building materials giant buys Bethesda masonry firm Washington Business Journal | 19 February 1990
  15. ^ CRH buys four US businesses for $66m Archived 17 February 2013 at archive.today FT - UK Company News 5 August 1994
  16. ^ Allied Products bought by CRH The New York Times 5 July 1996
  17. ^ CRH bolts on Swiss firm in £335m deal Irish Independent 10 November 2000
  18. ^ Dublin's CRH buys Mashav stake The Daily Deal | 9 August 2001
  19. ^ CVC sells Cementbouw to CRH for €976m Dow Jones eFinancial News 30 July 2003
  20. ^ CRH gets windfall of €574m as Portuguese firm buys out stake Irish Independent 26 April 2012
  21. ^ CRH Acquires Major Materials Business in Ohio PR Newsire 24 February 2000
  22. ^ "CRH's Oldcastle Group buys New Jersey quarry firm". RTÉ.ie. 30 April 2001. Retrieved 15 March 2015.
  23. ^ CRH to Acquire APAC in Group's Largest Ever Transaction Archived 3 March 2016 at the Wayback Machine CeramicNews August 2006
  24. ^ CRH spends €11.2m on US Concrete deal Irish Independent, 21 November 2007
  25. ^ CRH buys US-based Pavestone for €348m RTÉ Business, 13 March 2008
  26. ^ CRH buys 26% of Jilin Yatai China Daily, 9 January 2009
  27. ^ CRH builds up China cement presence RTÉ Business, 17 October 2006
  28. ^ CRH agrees to buy 50 pct stake in India's My Home Industries for €290 million[permanent dead link] Trading Markets, 20 March 2008
  29. ^ CRH confirms continued interest in India GlobalCement, 4 January 2013
  30. ^ a b c Grant, Jeremy (27 August 2015). "CRH adds CR Laurence to acquisitions tally for $1.3bn". Financial Times. Retrieved 13 May 2017.
  31. ^ Brown, Graeme (3 February 2015). "Lafarge Tarmac sold to Irish rival CRH in £5bn deal". Birmingham Post. Retrieved 17 February 2015.
  32. ^ a b "CRH: the stuff of growth". Financial Times. 17 November 2016. Retrieved 13 May 2017.
  33. ^ Elder, Bryce (6 November 2015). "CRH lifted by US infrastructure bill vote". Financial Times. Retrieved 13 May 2017.
  34. ^ Eley, Jonathan (30 June 2016). "Irish shares are not smiling". Financial Times. Retrieved 13 May 2017.
  35. ^ Thomas, Nathalie (9 November 2016). "CRH shares at 9-year high amid hopes of US spending boost". Financial Times. Retrieved 13 May 2017.
  36. ^ Brennan, Joe (15 April 2017). "CRH to avert pay revolt as chief's package doubles to €10m". Irish Times. Retrieved 13 May 2017.
  37. ^ a b Mulligan, John (27 April 2017). "'Stabilising' markets give first-quarter boost to CRH". The Independent. Ireland. Retrieved 13 May 2017.
  38. ^ Khan, Mehreen. "CRH gets boost from mild weather". Financial Times. Retrieved 13 May 2017.
  39. ^ Percival, Geoff (25 April 2017). "CRH tipped for another big purchase next year". Irish Examiner. Retrieved 13 May 2017.
  40. ^ Hamilton, Peter (8 May 2017). "BlackRock increases stakes in CRH and Bank of Ireland". Irish Times. Retrieved 8 May 2017.
  41. ^ "Board of Directors". crh.com. Retrieved 31 January 2017.
  42. ^ "Reuters". reuters.com. Retrieved 31 January 2017.
  43. ^ "CRH Regulatory News". crh.com. Retrieved 31 January 2017.
  44. ^ "What we do". CRH plc. Retrieved 20 March 2016.
  45. ^ "CRH Historical Financial Data". crh.com. Retrieved 15 March 2015.
Retrieved from "https://en.wikipedia.org/w/index.php?title=CRH_plc&oldid=927412896"