2009 Annual Report - CRH

Mark Towe
Chief Executive Officer
The Americas
Americas Products & Distribution
Americas Products experienced significant
demand pressures in 2009, particularly in the
important residential sector, and more
significantly in the non-residential sector as
the year progressed. Against this challenging
backdrop and with particularly acute trading
challenges in MMI, our Products businesses
experienced a 91% decline in full-year US
Dollar operating profit. Our Distribution business
also experienced a sharp downturn in activity
and operating profits were significantly lower.
Operations Review
Bill Sandbrook
Chief Executive Officer
Americas Products & Distribution
Americas Products & Distribution experienced significant demand pressures in 2009
with further declines in all of our markets. While there was some stabilisation of the
residential market at historically low levels, non-residential continued to weaken
throughout the year.
Regionally our operations in the West and Canada performed better relative to our
southeastern and northeastern markets which were noticeably weaker than in 2008.
The continuing focus of management remains on internal cost reductions, delivering
supply chain efficiencies and growing revenues through product innovation and
providing systems solutions to the construction market.
Results
% of
€ million Group 2009 2008 Change Organic Acquisitions Restructuring Impairments Exchange
Sales Revenue 21% 3,709 4,686 (977) (1,234) 29 – – 228
EBITDA* 12% 212 485 (273) (247) 2 (47) – 19
Operating Profit* 4% 38 330 (292) (247) 1 (47) (11) 12
Average Net Assets 2,477 2,586
EBITDA Margin 5.7% 10.3%
Operating Profit Margin 1.0% 7.0%
* EBITDA and Operating Profit exclude profit on disposal
of non-current assets
Analysis of Change
CRH 33