The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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CRH Gets Windfall Of €574m As Portuguese Firm Buys Out Stake Portuguese firm Semapa has agreed to pay CRH €574m for a stake the Irish group owns in a joint venture between the two companies. A Paris-based international arbitration tribunal ruled last year that CRH had to sell its 49pc stake in Portuguese cement maker Secil. CRH and Semapa had been at loggerheads since 2009, when Semapa claimed that it was entitled to exercise an option that would allow it to acquire the Irish firm's stake in the joint venture. CRH paid €429m to Semapa in 2004 to buy a 49pc stake in Secil. That included the assumption of €100m in debt. After the firms later bickered about entitlements, the matter was referred to the International Chamber of Commerce for a final resolution. CRH had strongly believed its stance -- which rejected Semapa's claim it was entitled to fully acquire Secil -- would be vindicated. Semapa confirmed yesterday that it will now buy the CRH stake by May 15. While it appeared that CRH may have lost out, it has quite possibly had a lucky escape. Economy Portugal, which was bailed out last year, has been struggling to get back on track. While its unemployment rate is broadly similar to Ireland's, at 14pc, it lacks a broad industrial business base. Portugal's economy is expected to contract 3.3pc this year. The amount being paid by Semapa represents a multiple of 11.5 times earnings in a sector where multiples are currently running at about 6.5 times earnings. "This is a significant positive for CRH," said analyst Barry Dixon at Davy Stockbrokers. "Not only does it remove a business that is struggling, but it further strengthens the company's balance sheet, giving it the firepower to invest in faster-growing businesses and economies." He added that the sale of the stake would have a "significant impact" on CRH's balance sheet. Shares in CRH were trading 2pc higher by yesterday afternoon in London. http://www.independent.ie/business/irish/crh-gets-windfall-of-574m-as-portuguese-firm-buys-out-stake-3092482.html
CRH : Set To Build On Yatai Cement Stake In China Irish building materials group CRH PC (CRH.DB) said at its annual meeting Wednesday it planned to increase its stake in the Yatai cement business in China to 49% from 26% as part of a wider push into emerging markets, the Financial Times newspaper reported on its website. Chief Executive Myles Lee said CRH was preparing to exercise an option, opening in January 2013, to raise the stake, the report said. "We are setting the scene at the moment for that and we are keen to increase that stake. Obviously in everything valuation is key, so it has to be at a valuation that makes sense for our shareholders," the report quote Lee as saying. Read the full story in the Financial Times here: http://www.google.com/url?sa=t&rct=j&q=By%20Jamie%20Smyth%20in%20Dublin%20CRH%20blamed%20bad%20weather%20in%20Europe%20in%20the%20first%20quarter%20and%20volatility%20caused%20by%20the%20eurozone%20debt%20crisis%20for%20reduced%20earnings%20in%20the%20&source=web&cd=1&ved=0CE4QFjAA&url=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F8e341b40-99ec-11e1-aa6d-00144feabdc0.html&ei=XtitT-neLuTD0QWLobStCQ&usg=AFQjCNEMWIqRMRfbgJFYdolR3X-NmRakAQ P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
CRH Expects Similar First-Half Sales To 2011 BUILDING MATERIALS group CRH expects earnings in the first half of this year to be similar to 2011, following a slow start in its European businesses. The group told shareholders at its agm yesterday that, by the end of April, sales were 2 per cent ahead of last year. However, CRH said a slow start in its European businesses left earnings before interest, tax and write-offs – a measure of the cash flow the company generates – lagging 2011. Against this background, and given normal weather conditions in the US over the next two months, when its materials operations gear up for their busiest time of year, the group expects earnings to be close to the €574 million returned in the first half of 2011. “With incrementally more positive US economic data and construction prospects for 2012 mitigating a more cautious view on the outlook in Europe, we continue, subject to no major financial or energy market dislocations, to expect overall like-for-like sales growth in 2012,” CRH said. The group said that the exceptionally cold February hit trade in Europe. “This resulted in a like-for-like sale decline of approximately 6 per cent for January-February,” its statement added. CRH went on to say that the rate of decline slowed subsequently as the weather improved, leaving sales for the four months ended April 30th at 4 per cent behind 2011. By contrast, in the US, which is responsible for just over half its revenues, the group benefited from unusually mild weather in the early months of the year. Aided by this, and improving economic activity in the US, where most of its American businesses are based, its operations delivered an 11 per cent increase in sales. The group’s sales are tied to construction activity in its markets, and that in turn can be affected by the weather. The group spent €230 million on acquisitions in the first four months of the year, purchasing businesses in Germany, Nebraska and Texas. Last year CRH switched its premier listing from Dublin to London. After yesterday’s meeting, chief executive Myles Lee said that, as a result, the group had seen a 3-4 per cent increase in the number of index-tracking funds in its shareholder base. Nick Hartery succeeded Kieran McGowan as chairman of the group at yesterday’s meeting. Mr Hartery is a former vice-president at multinational Dell’s Europe, Middle East and Africa operations. Before that he held senior positions at Eastman Kodak and Verbatim.
CRH: UBS ups target from 1,150p to 1,300p, neutral rating kept.
Hi folks, Perhaps you've seen it already, but I recently commenced The Great Irish Share Valuation Project on my Wexboy blog. I'm setting a Fair Value Price Target for every listed Irish company. So far I've valued 2 dozen companies, including CRH. I hope you'll take a look (don't hesitate to comment or email me), and perhaps become a regular reader. Cheers, Wexboy
The Times’s Tempus column takes a look at FTSE 100 new entrant CRH, an Irish constructions materials firm with global reach. Yesterday it released its biannual round up of acquisitions, with the €407m split rouhgly equally between Europe and the US. With a model that depends on buying relatively small local suppliers to the building trade the number of purchases can be dizzying, over 20 in the last six months alone. Tempus makes the point that as a new FTSE 100 entrant CRH will be more heavily studied by analysts who may not be terribly impressed by its 17 times earnings value and a margin below 5%. Tempus says, leave well alone for now.
Coverage Building materials supplier CRH (CRH) invested 0.4 billion euros (0.33 billion pounds) in acquisition and development activity over the second half of 2011, bringing the full year total to 0.6 billion euros (0.5 billion pounds). Activities included 7 European acquisitions and 15 in the Americas, largely in the materials division. The purchases have increased the firm's aggregate reserves by around 254 million tonnes. Meanwhile, the group's 26% owned Chinese associate Yatai Building Materials completed the construction of a cement mill capable of processing 1.5 million tonnes per annum. CRH shares fell 20p to 1,285p.
Commenting on these developments, Myles Lee, CRH Chief Executive, said: "The bolt-on transactions announced today are very much in keeping with the Group's strategy to acquire businesses which add value to our existing operations or which expand our footprint in developed markets where we see opportunities for further growth. Meanwhile we continued to grow our activities in developing economies by investing through our 26% associate in northeastern China and through a strategic bolt-on acquisition in Ukraine."
CRH ANNOUNCES SECOND-HALF 2011 DEVELOPMENT SPEND OF €0.4 BILLION BRINGING TOTAL 2011 DEVELOPMENT SPEND TO €0.6 BILLION CRH plc, the international building materials group, today announces 23 acquisition and investment initiatives totalling approximately €0.4 billion undertaken during the second-half of 2011 as part of its continuing programme of development activity. The development initiatives in this Update include: · Europe Materials: 3 acquisitions, 1 investment - €195 million A significant investment in cement grinding capacity in Belgium complementing existing activities in the Benelux; strategic add-on in Ukraine for recently commissioned state-of-the-art cement plant; readymixed concrete bolt-on acquisitions in Finland and continued development by associate Yatai Building Materials in northeastern China. · Europe Products & Distribution: 4 acquisitions - €28 million Further build-out of Sanitary, Heating and Plumbing distribution activities expanding to 20 the total number of branches in this segment in Belgium. · Americas Materials: 9 acquisitions - €112 million (US$157 million) Active second-half bolt-on programme, adding approximately 0.25 billion tonnes of aggregates reserves, improving existing market positions and bringing total 2011 investment by this Division to approximately US$0.3 billion. · Americas Products & Distribution: 6 acquisitions - €72 million (US$101 million) Addition of 24 Distribution branches in four transactions in the second half of 2011; in particular the acquisition in December of United Products expanded our existing positions in the Northern Plains states of Minnesota, Wisconsin, North Dakota, South Dakota and Nebraska.
http://www.investegate.co.uk/Article.aspx?id=201201040700109422U
Charles Stanley has initiated its coverage on newly-listed building materials group CRH with a hold recommendation after it joined the FTSE 100 earlier this month. “On valuation the shares are probably cheap on a long term view and should have yield support but, given the economic outlook and the cyclicality of the industry there seems no urgency to buy the shares,” said analyst Tome Gidley-Kitchin.
All the up to the higher level next week
Great to hear from folks/keep it up/a long way to go!
will break the 17p and will start north.
CRH is moving its main listing to the LSE from the ISEQ. 1098 = £10.98, so don't get too excited! The previous figures here are in pounds too not pence (or maybe Euro? as I haven't been following this board).
What just happened here??
one day it will break the 17p ! Yep!! LOL!!
Is this share slowly going down the tubes.?Takeover time.
SP rose to 16.68 and dropped to 16.21 - one day it will break the 17p !
That 17p barrier has proved a hard nut to crack - if its broken then we may see some decent progress but it has held strong for quite a while now
Good news as business seems to be picking up a little. A blue day?
CRH plc, the international building materials group, is issuing this Interim Management Statement, which is in accordance with the reporting requirements of the EU Transparency Directive, in advance of its Annual General Meeting which is being held today at 11.00 am in Dublin. Year-to-date Trading As we indicated with our preliminary 2010 results in early March, Group revenues for the first two months of 2011 showed a good improvement on last year's level, benefiting from a much more favourable weather backdrop than in 2010. This cumulative early sales trend has, as expected, moderated through March and April; nevertheless like-for-like sales for the four months to end-April were 6% ahead of 2010. We currently expect like-for-like sales for the first half of 2011 to be ahead of 2010, with EBITDA for the period also expected to exceed last year's level (first-half 2010: €0.52 billion).
Any body out there?
Last share chat 29/11/09.Why the apathy?