2009 Annual Report - CRH

Europe Materials
Europe Materials experienced very
challenging trading conditions in
almost all markets in 2009. The
financial crisis severely impacted
investment in new housing and private
non-residential building. Governmentfunded
infrastructure and public
building reduced this impact
somewhat.
The financial crisis created very difficult market conditions for Europe
Materials leading to significantly reduced volumes and a drop in margins.
In response, initiatives launched to cut costs and reduce capacity during
2008 were intensified and helped mitigate the impact on profitability.
A curtailment of capital expenditure, together with a reduction in working
capital, resulted in a strong cashflow performance for the year.
Results
Operations Review
Henry Morris
Managing Director
Europe Materials
% of
€ million Group 2009 2008 Change Organic Acquisitions Restructuring Impairments Exchange
Sales Revenue 16% 2,749 3,696 (947) (783) 53 – – (217)
EBITDA* 24% 434 806 (372) (263) 14 (56) – (67)
Operating Profit* 27% 257 631 (374) (260) 10 (56) (9) (59)
Average Net Assets 3,312 3,173
EBITDA Margin 15.8% 21.8%
Operating Profit Margin 9.3% 17.1%
* EBITDA and Operating Profit exclude profit on disposal
of non-current assets
Analysis of Change
CRH 21