CRH PUBLIC LTD CO [CRH] Filings

10-Q 1 crh-20240630.htm 10-Q crh-20240630

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to
Commission File Number: 001-32846

CRH public limited company
(Exact name of registrant as specified in its charter)


Ireland			98-0366809
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

Stonemason’s Way, Rathfarnham, Dublin 16, D16 KH51, Ireland
+353 1 404 1000

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class:	Trading Symbols:	Name of each exchange on which registered:
Ordinary Shares of €0.32 each	CRH	New York Stock Exchange
5.200% Guaranteed Notes due 2029	CRH/29	New York Stock Exchange
6.400% Notes due 2033	CRH/33A	New York Stock Exchange
5.400% Guaranteed Notes due 2034	CRH/34	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐ Yes ☒ No

As of July 26, 2024, the number of outstanding Ordinary Shares was 682,777,425.686,67

EXPLANATORY NOTE

CRH plc (together with its consolidated subsidiaries, the 'Company', 'CRH', the 'Group', 'we', 'us' or 'our'), a corporation organized under the laws of the Republic of Ireland, has determined, as of June 30, 2024 (including as a result of more than 50% of its ordinary shares being held by U.S. residents), that it will no longer qualify as a foreign private issuer as defined under the U.S. Securities Exchange Act of 1934 (the 'Exchange Act'). Effective as of January 1, 2025 CRH will be considered a U.S. domestic issuer.

For fiscal year 2024, CRH has voluntarily chosen to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K with the U.S. Securities and Exchange Commission (SEC) instead of filing on the reporting forms available to foreign private issuers.

TABLE OF CONTENTS


		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	39

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signatures		42

CERTAIN TERMS

Except as otherwise specified or the context otherwise requires, references to years indicate our fiscal year ended December 31 of the respective year.

References to the '2023 Form 10-K' are to our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024 and amended on March 15, 2024. References to this 'Quarterly Report' are to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. All references to the 'Condensed Consolidated Financial Statements' are to Part I, Item 1 of this Quarterly Report. All references to the ‘same period in 2023’ refer to either the three months ended June 30, 2023 or the six months ended June 30, 2023, as applicable, unless otherwise indicated.

References to the 'Ordinary Shares' and 'Common Shares' refer to our ordinary shares of €0.32 each.

CRH Form 10-Q 1

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statements of Income (Unaudited)

(in $ millions, except share and per share data)


	Three months ended		Six months ended
	June 30		June 30
	2024	2023	2024	2023
Product revenues	7,308	7,431	12,676	12,769
Service revenues	2,346	2,278	3,511	3,367
Total revenues	9,654	9,709	16,187	16,136
Cost of product revenues	(3,759)	(3,932)	(7,336)	(7,676)
Cost of service revenues	(2,220)	(2,147)	(3,369)	(3,211)
Total cost of revenues	(5,979)	(6,079)	(10,705)	(10,887)
Gross profit	3,675	3,630	5,482	5,249
Selling, general and administrative expenses	(1,948)	(2,035)	(3,735)	(3,657)
Gain on disposal of long-lived assets	102	18	110	23

Operating income	1,829	1,613	1,857	1,615
Interest income	36	36	79	76
Interest expense	(155)	(73)	(288)	(154)
Other nonoperating income, net	23	2	184	2
Income from operations before income tax expense and income from equity method investments	1,733	1,578	1,832	1,539
Income tax expense	(430)	(379)	(411)	(365)
Income from equity method investments	6	13	2	7
Net income	1,309	1,212	1,423	1,181
Net (income) attributable to redeemable noncontrolling interests	(10)	(10)	(12)	(12)
Net (income) loss attributable to noncontrolling interests	(2)	(3)	2	2
Net income attributable to CRH plc	1,297	1,199	1,413	1,171

Earnings per share attributable to CRH plc
Basic	$1.89	$1.63	$2.05	$1.57
Diluted	$1.88	$1.62	$2.03	$1.56

Weighted average common shares outstanding
Basic	685.5	734.7	686.6	738.8
Diluted	688.8	738.2	691.1	743.4

The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.

CRH Form 10-Q 2

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(in $ millions)


	Three months ended		Six months ended
	June 30		June 30
	2024	2023	2024	2023
Net income	1,309	1,212	1,423	1,181
Other comprehensive (loss) income, net of tax:
Currency translation adjustment	(49)	49	(197)	147
Net change in fair value of effective portion of cash flow hedges, net of tax of $(4) million and $(3) million for the three months ended June 30, 2024 and June 30, 2023, respectively; and $2 million and $(3) million for the six months ended June 30, 2024 and June 30, 2023, respectively	19	(7)	(18)	24
Actuarial gains (losses) and prior service credits (costs) for pension and other postretirement plans, net of tax of $nil million and $nil million for the three months ended June 30, 2024 and June 30, 2023, respectively; and $1 million and $nil million for the six months ended June 30, 2024 and June 30, 2023, respectively	2	-	(1)	(3)
Other comprehensive (loss) income	(28)	42	(216)	168
Comprehensive income	1,281	1,254	1,207	1,349
Comprehensive (income) attributable to redeemable noncontrolling interests	(10)	(10)	(12)	(12)
Comprehensive loss (income) attributable to noncontrolling interests	10	3	21	(4)
Comprehensive income attributable to CRH plc	1,281	1,247	1,216	1,333

The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.

CRH Form 10-Q 3

Condensed Consolidated Balance Sheets (Unaudited)

(in $ millions, except share data)


	June 30	December 31	June 30
	2024	2023	2023
Assets
Current assets:
Cash and cash equivalents	3,066	6,341	4,275
Restricted cash	869	-	-
Accounts receivable, net	5,893	4,507	6,119
Inventories	4,514	4,291	4,276
Assets held for sale	67	1,268	-
Other current assets	704	478	404
Total current assets	15,113	16,885	15,074
Property, plant and equipment, net	19,235	17,841	18,155
Equity method investments	484	620	672
Goodwill	10,251	9,158	9,338
Intangible assets, net	1,086	1,041	1,061
Operating lease right-of-use assets, net	1,279	1,292	1,187
Other noncurrent assets	657	632	655
Total assets	48,105	47,469	46,142

Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable	3,363	3,149	3,553
Accrued expenses	2,272	2,296	2,335
Current portion of long-term debt	3,218	1,866	2,185
Operating lease liabilities	259	255	240
Liabilities held for sale	14	375	-
Other current liabilities	1,422	2,072	1,358
Total current liabilities	10,548	10,013	9,671
Long-term debt	9,900	9,776	7,563
Deferred income tax liabilities	2,914	2,738	3,010
Noncurrent operating lease liabilities	1,114	1,125	1,016
Other noncurrent liabilities	2,178	2,196	2,173
Total liabilities	26,654	25,848	23,433
Commitments and contingencies (Note 18)
Redeemable noncontrolling interests	335	333	313
Shareholders’ equity
Preferred stock, €1.27 par value, 150,000 shares authorized and 50,000 shares issued and outstanding for 5% preferred stock and 872,000 shares authorized, issued and outstanding for 7% 'A' preferred stock, as of June 30, 2024, December 31, 2023, and June 30, 2023	1	1	1
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 725,113,896, 734,519,598 and 752,140,338 issued and outstanding, as of June 30, 2024, December 31, 2023, and June 30, 2023 respectively	292	296	302
Treasury stock, at cost (41,540,247, 42,419,281 and 24,158,408 shares as of June 30, 2024, December 31, 2023 and June 30, 2023 respectively)	(2,143)	(2,199)	(1,140)
Additional paid-in capital	359	454	391
Accumulated other comprehensive loss	(813)	(616)	(625)
Retained earnings	23,030	22,918	22,892
Total shareholders’ equity attributable to CRH plc shareholders	20,726	20,854	21,821
Noncontrolling interests	390	434	575
Total equity	21,116	21,288	22,396
Total liabilities, redeemable noncontrolling interests and equity	48,105	47,469	46,142

The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.

CRH Form 10-Q 4

Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)


	Six months ended
	June 30
	2024	2023
Cash Flows from Operating Activities:
Net income	1,423	1,181
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	821	785

Share-based compensation	63	60
Gains on disposals from businesses and long-lived assets, net	(248)	(23)
Deferred tax expense	197	95
Income from equity method investments	(2)	(7)
Pension and other postretirement benefits net periodic benefit cost	18	14
Non-cash operating lease costs	151	138
Other items, net	(16)	35
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable, net	(1,371)	(1,758)
Inventories	(175)	(22)
Accounts payable	232	558
Operating lease liabilities	(151)	(137)
Other assets	(107)	(2)
Other liabilities	(39)	69
Pension and other postretirement benefits contributions	(23)	(23)
Net cash provided by operating activities	773	963

Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(1,130)	(771)
Acquisitions, net of cash acquired	(2,522)	(198)
Proceeds from divestitures and disposals of long-lived assets	1,096	42
Dividends received from equity method investments	15	12
Settlements of derivatives	(3)	7
Deferred divestiture consideration received	55	-
Other investing activities, net	(128)	(62)
Net cash used in investing activities	(2,617)	(970)

CRH Form 10-Q 5

Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)


	Six months ended
	June 30
	2024	2023
Cash Flows from Financing Activities:
Proceeds from debt issuances	3,370	855
Payments on debt	(1,691)	(849)
Settlements of derivatives	(3)	4

Payments of finance lease obligations	(21)	(12)
Deferred and contingent acquisition consideration paid	(10)	(4)
Dividends paid	(1,231)	(761)
Distributions to noncontrolling and redeemable noncontrolling interests	(22)	(23)


Repurchases of common stock	(907)	(959)
Proceeds from exercise of stock options	-	3
Net cash used in financing activities	(515)	(1,746)

Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(85)	92
Decrease in cash and cash equivalents, including restricted cash	(2,444)	(1,661)
Cash and cash equivalents and restricted cash at the beginning of period	6,390	5,936
Cash and cash equivalents and restricted cash at the end of period	3,946	4,275

Supplemental cash flow information:
Cash paid for interest (including finance leases)	216	201
Cash paid for income taxes	304	277

Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets	3,066	4,275
Restricted cash presented in the Condensed Consolidated Balance Sheets	869	-
Cash and cash equivalents included in Assets held for sale	11	-
Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows	3,946	4,275

The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.

CRH Form 10-Q 6

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(in $ millions, except share and per share data)


	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Total Shareholders' Equity Attributable to CRH plc Shareholders	Noncontrolling Interests	Total Equity
	Shares	Amount	Shares	Amount	Shares	Amount
Balance at March 31, 2024	0.9	$1	729.5	$294	(41.9)	($2,166)	$337	($797)	$22,346	$20,015	$401	$20,416
Net income	-	-	-	-	-	-	-	-	1,297	1,297	2	1,299
Other comprehensive loss	-	-	-	-	-	-	-	(16)	-	(16)	(12)	(28)
Share-based compensation	-	-	-	-	-	-	33	-	-	33	-	33

Repurchases and retirement of common stock	-	-	(4.4)	(2)	-	-	-	-	(346)	(348)	-	(348)
Shares issued under employee share plans	-	-	-	-	0.4	23	(11)	-	(24)	(12)	-	(12)
Dividends declared on common stock	-	-	-	-	-	-	-	-	(240)	(240)	-	(240)
Distributions to noncontrolling interests	-	-	-	-	-	-	-	-	-	-	(1)	(1)


Adjustment of redeemable noncontrolling interests to redemption value	-	-	-	-	-	-	-	-	(3)	(3)	-	(3)
Balance at June 30, 2024	0.9	$1	725.1	$292	(41.5)	($2,143)	$359	($813)	$23,030	$20,726	$390	$21,116

For the three months ended June 30, 2024, dividends declared on common stock were $0.35 per common share.


	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Total Shareholders' Equity Attributable to CRH plc Shareholders	Noncontrolling Interests	Total Equity
	Shares	Amount	Shares	Amount	Shares	Amount
Balance at December 31, 2023	0.9	$1	734.5	$296	(42.4)	($2,199)	$454	($616)	$22,918	$20,854	$434	$21,288
Net income	-	-	-	-	-	-	-	-	1,413	1,413	(2)	1,411
Other comprehensive loss	-	-	-	-	-	-	-	(197)	-	(197)	(19)	(216)
Share-based compensation	-	-	-	-	-	-	63	-	-	63	-	63
Repurchases of common stock	-	-	-	-	(2.6)	(179)	-	-	-	(179)	-	(179)
Repurchases and retirement of common stock	-	-	(9.4)	(4)	-	-	-	-	(724)	(728)	-	(728)
Shares issued under employee share plans	-	-	-	-	3.5	235	(158)	-	(89)	(12)	-	(12)
Dividends declared on common stock	-	-	-	-	-	-	-	-	(481)	(481)	-	(481)
Distributions to noncontrolling interests	-	-	-	-	-	-	-	-	-	-	(5)	(5)
Divestiture of noncontrolling interests	-	-	-	-	-	-	-	-	-	-	(18)	(18)

Adjustment of redeemable noncontrolling interests to redemption value	-	-	-	-	-	-	-	-	(7)	(7)	-	(7)
Balance at June 30, 2024	0.9	$1	725.1	$292	(41.5)	($2,143)	$359	($813)	$23,030	$20,726	$390	$21,116

For the six months ended June 30, 2024, dividends declared on common stock were $0.70 per common share.

CRH Form 10-Q 7

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(in $ millions, except share and per share data)


	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Total Shareholders' Equity Attributable to CRH plc Shareholders	Noncontrolling Interests	Total Equity
	Shares	Amount	Shares	Amount	Shares	Amount
Balance at March 31, 2023	0.9	$1	752.1	$302	(11.6)	($487)	$420	($673)	$21,692	$21,255	$582	$21,837
Net income	-	-	-	-	-	-	-	-	1,199	1,199	3	1,202
Other comprehensive income	-	-	-	-	-	-	-	48	-	48	(6)	42
Share-based compensation	-	-	-	-	-	-	30	-	-	30	-	30
Repurchases of common stock	-	-	-	-	(14.3)	(713)	-	-	-	(713)	-	(713)



Shares issued under employee share plans	-	-	-	-	1.8	60	(59)	-	-	1	-	1
Dividends declared on common stock	-	-	-	-	-	-	-	-	3	3	-	3
Distributions to noncontrolling interests	-	-	-	-	-	-	-	-	-	-	(4)	(4)
Adjustment of redeemable noncontrolling interests to redemption value	-	-	-	-	-	-	-	-	(2)	(2)	-	(2)
Balance at June 30, 2023	0.9	$1	752.1	$302	(24.1)	($1,140)	$391	($625)	$22,892	$21,821	$575	$22,396

For the three months ended June 30, 2023, dividends declared on common stock were $nil per common share.


	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Total Shareholders' Equity Attributable to CRH plc Shareholders	Noncontrolling Interests	Total Equity
	Shares	Amount	Shares	Amount	Shares	Amount
Balance at December 31, 2022	0.9	$1	752.1	$302	(7.7)	($297)	$443	($787)	$22,495	$22,157	$575	$22,732
Net income	-	-	-	-	-	-	-	-	1,171	1,171	(2)	1,169
Other comprehensive income	-	-	-	-	-	-	-	162	-	162	6	168
Share-based compensation	-	-	-	-	-	-	60	-	-	60	-	60
Repurchases of common stock	-	-	-	-	(19.9)	(959)	-	-	-	(959)	-	(959)



Shares issued under employee share plans	-	-	-	-	3.5	116	(112)	-	(1)	3	-	3
Dividends declared on common stock	-	-	-	-	-	-	-	-	(761)	(761)	-	(761)
Distributions to noncontrolling interests	-	-	-	-	-	-	-	-	-	-	(4)	(4)
Adjustment of redeemable noncontrolling interests to redemption value	-	-	-	-	-	-	-	-	(12)	(12)	-	(12)
Balance at June 30, 2023	0.9	$1	752.1	$302	(24.1)	($1,140)	$391	($625)	$22,892	$21,821	$575	$22,396

For the six months ended June 30, 2023, dividends declared on common stock were $1.03 per common share.

The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.

CRH Form 10-Q 8

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Summary of significant accounting policies

1.1. Description of business

CRH plc (the Company) is a multinational company that operates in the building materials industry, providing essential products and services for construction projects primarily in North America and Europe. The Company is one of the largest suppliers of building materials globally. The Company is a major producer of aggregates, cement, readymixed concrete, asphalt, paving and construction services, and value-added building products. The Company provides solutions to a wide range of customers, including contractors, builders, engineers, infrastructure developers, and the residential market.

1.2. Basis of presentation and use of estimates

The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited Consolidated Financial Statements and related notes thereto included in the Company’s 2023 Form 10-K. In the opinion of our management, these statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods and at the dates presented. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Condensed Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s 2023 Form 10-K.

The preparation of the Company's Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses. Such estimates include impairment of long-lived assets, impairment of goodwill, pension and other postretirement benefits, tax matters and litigation, including insurance and environmental compliance costs. These estimates and assumptions are based on management’s judgment.

Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances or experiences on which the estimate was based or as a result of new information.

Changes in estimates, including those resulting from changes in the economic environment, are reflected in the period in which the change in estimate occurs.

1.3. Restricted cash

Restricted cash consists of amounts held in escrow related to transactions expected to close in a future period, including amounts payable for the acquisition of Adbri Ltd. (Adbri) as referenced in Note 4, as well as amounts designated for exchange of assets under Section 1031 of the U.S. Internal Revenue Code.

1.4. New accounting standards

Refer to Note 1.25 in the 2023 Form 10-K for impacts of new accounting standards. There were no material impacts from the adoption of new accounting standards for the six months ended June 30, 2024.

CRH Form 10-Q 9

2. Revenue

The Company disaggregates revenue based on its operating and reportable segments. The Company’s reportable segments are: (1) Americas Materials Solutions, (2) Americas Building Solutions, (3) Europe Materials Solutions, and (4) Europe Building Solutions.

Revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions.

The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications.

Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure.

Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects.

Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces.


	Three months ended June 30, 2024
in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Principal activities and products
Essential Materials	1,312	-	1,207	-	2,519
Road Solutions (i)	3,094	-	1,197	-	4,291
Building & Infrastructure Solutions (ii)	-	680	-	528	1,208
Outdoor Living Solutions	-	1,436	-	200	1,636
Total revenues	4,406	2,116	2,404	728	9,654

	Three months ended June 30, 2023
in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Principal activities and products
Essential Materials	1,255	-	1,381	-	2,636
Road Solutions (i)	2,909	-	1,233	-	4,142
Building & Infrastructure Solutions (ii)	-	679	-	596	1,275
Outdoor Living Solutions	-	1,469	-	187	1,656
Total revenues	4,164	2,148	2,614	783	9,709


	Six months ended June 30, 2024
in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Principal activities and products
Essential Materials	2,215	-	2,197	-	4,412
Road Solutions (i)	4,393	-	2,220	-	6,613
Building & Infrastructure Solutions (ii)	-	1,228	-	1,021	2,249
Outdoor Living Solutions	-	2,581	-	332	2,913
Total revenues	6,608	3,809	4,417	1,353	16,187

	Six months ended June 30, 2023
in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Principal activities and products
Essential Materials	2,062	-	2,478	-	4,540
Road Solutions (i)	3,997	-	2,314	-	6,311
Building & Infrastructure Solutions (ii)	-	1,248	-	1,159	2,407
Outdoor Living Solutions	-	2,561	-	317	2,878
Total revenues	6,059	3,809	4,792	1,476	16,136

CRH Form 10-Q 10

(i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time was:


	Three months ended		Six months ended
	June 30		June 30
in $ millions	2024	2023	2024	2023
Americas Materials Solutions	1,736	1,606	2,332	2,101
Europe Materials Solutions	453	502	867	931
Total revenue from contracts with customers	2,189	2,108	3,199	3,032

(ii) Revenue from contracts with customers in the Building & Infrastructure Solutions principal activities and products category that is recognized over time was:


	Three months ended		Six months ended
	June 30		June 30
in $ millions	2024	2023	2024	2023
Americas Building Solutions	26	18	49	34
Europe Building Solutions	131	152	263	301
Total revenue from contracts with customers	157	170	312	335

Contract assets were $887 million, $716 million and $906 million and contract liabilities were $448 million, $439 million and $329 million, at June 30, 2024, December 31, 2023 and June 30, 2023, respectively. The Company recognized revenue of $339 million and $270 million for the six months ended June 30, 2024, and June 30, 2023, respectively, which was previously included in the contract liability balance at December 31, 2023 and December 31, 2022, respectively.

Contract assets include unbilled revenue and retentions held by customers in respect of construction contracts at June 30, 2024, December 31, 2023 and June 30, 2023 amounting to $664 million and $223 million, $471 million and $245 million, and $723 million and $183 million, respectively. Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time. Retentions represent amounts that have been billed to customers but payment is withheld until final acceptance of the performance obligation by the customer. Retentions that have been billed, but are not due until completion of performance and acceptance by customers, are generally expected to be collected within one year. The Company applies the practical expedient and does not adjust any of its transaction prices for the time value of money.

On June 30, 2024, the Company had $4,032 million of transaction price allocated to remaining performance obligations. The majority of open contracts at June 30, 2024 are expected to close and revenue to be recognized within 12 months of the balance sheet date.

3. Assets held for sale and divestitures

In November 2023, the Company entered into a sales agreement with SigmaRoc plc. to divest of its Lime operations in Europe for consideration of $1.1 billion. The transaction was structured in three phases. The first phase of the transaction, comprising the Company’s Lime operations in Germany, Czech Republic and Ireland, closed on January 1, 2024 and the second phase comprising the operations in the United Kingdom, closed on March 27, 2024. The divestitures resulted in a pretax gain of $115 million which is included in Other nonoperating income, net. The results of the divested operations and the gain on divestiture are reported in the Europe Materials Solutions segment. The third phase comprising the operations in Poland, is expected to close in the second half of 2024.

The Lime operations in Poland comprise part of the Company’s Europe Materials Solutions segment and the relevant assets, $67 million, and liabilities, $14 million, have accordingly been reclassified as assets and liabilities held for sale.

The disposal of certain cement, aggregates and readymixed concrete operations in Quebec, Canada, previously classified as held for sale, completed during the second quarter of 2024.

CRH Form 10-Q 11

4. Acquisitions

The Company strategically acquires companies in order to increase its footprint and offer products and services that enhance its existing offerings. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values at the date of the acquisition with the remaining amount recorded in goodwill.

On February 9, 2024, the Company acquired a portfolio of cement and readymixed concrete assets and operations in Texas, United States (the 'Hunter' acquisition) for a total consideration of $2,106 million. The Hunter acquisition is reported in the Americas Materials Solutions segment.

During the six months ended June 30, 2024, the Company completed the acquisition of 16 companies. The total cash consideration for these acquisitions net of cash acquired, was $2,522 million. The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates. The Company expects to finalize the valuation and complete the purchase price allocations as soon as practical but no later than one year from the acquisition dates.

The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions at June 30, 2024 were:


in $ millions	Hunter	Other acquisitions (i)	Total
Identifiable assets acquired and liabilities assumed
Cash and cash equivalents	-	2	2
Accounts receivable, net	-	12	12
Inventories	70	9	79
Other current assets	2	10	12
Property, plant and equipment, net	1,070	229	1,299

Intangible assets, net	2	43	45
Operating lease right-of-use assets, net	12	34	46
Accounts payable	-	7	7
Accrued expenses	6	3	9
Operating lease liabilities	12	34	46
Long-term debt	-	(2)	(2)

Deferred income tax liabilities	-	15	15
Other liabilities	7	16	23
Total identifiable net assets at fair value	1,131	266	1,397
Goodwill	975	196	1,171
Total consideration	2,106	462	2,568

Consideration satisfied by:
Cash payments	2,106	418	2,524
Asset exchange	-	41	41
Deferred consideration (stated at net present cost)	-	2	2
Contingent consideration	-	1	1
Total consideration	2,106	462	2,568

Acquisitions of businesses, net of cash acquired
Cash consideration	2,106	418	2,524
Less: cash and cash equivalents acquired	-	(2)	(2)
Total outflow in the Condensed Consolidated Statements of Cash Flows	2,106	416	2,522

(i) Other acquisitions are aggregated on the basis of individual immateriality.

As a result of the acquisitions completed through June 30, 2024, the Company recognized $45 million of amortizable intangible assets and $1,171 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the goodwill recognized in respect of the acquisitions completed in the six months ended June 30, 2024, $1,125 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of six years.

On February 26, 2024, the Company announced that it had entered into a binding agreement to acquire a majority stake in Adbri (the ‘Adbri transaction’), a materials business in Australia. On July 1, 2024, the Adbri transaction was completed with the acquisition of approximately 57% of the issued share capital for $0.8 billion. The assets acquired complement the Company’s core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for the Company’s existing Australian business. Due to the timing of the Adbri transaction, the preliminary purchase price accounting remains ongoing as the Company continues to collect and assess information as of the transaction date.

CRH Form 10-Q 12

Acquisition-related costs

Acquisition-related costs have been included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. These costs include legal and consulting expenses incurred in connection with completed acquisitions. The Company incurred the following acquisition-related costs:


	Three months ended		Six months ended
	June 30		June 30
in $ millions	2024	2023	2024	2023

Hunter	2	-	22	-
Other acquisitions	2	-	2	2
Total acquisition-related costs	4	-	24	2

The financial information regarding the acquisitions included in the Company’s Condensed Consolidated Statements of Income from the date of acquisition through June 30 were:


in $ millions	2024	2023
Revenue	179	46
Net loss attributable to CRH plc (i)	(17)	(3)

(i) Net loss amount excludes acquisition-related costs that arose during the six months ended June 30, 2024, and June 30, 2023.

Pro forma results of operations for the acquisitions have not been presented because they are not material to the Condensed Consolidated Financial Statements.

5. Accounts receivable, net

Accounts receivable, net, were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Trade receivables	4,788	3,574	4,957
Construction contract assets	887	716	906
Total accounts receivable	5,675	4,290	5,863
Less: allowance for credit losses	(142)	(149)	(139)
Other current receivables	360	366	395
Total accounts receivable, net	5,893	4,507	6,119

Of the total Accounts receivable, net balances $34 million, $27 million and $39 million at June 30, 2024, December 31, 2023 and June 30, 2023, respectively, were due from equity method investments.

The changes in the allowance for credit losses were as follows:


in $ millions	2024	2023
At January 1	149	125
Charge-offs	(5)	(8)
Provision for credit losses	-	19
Foreign currency translation and other	(2)	3
At June 30	142	139

6. Inventories

Inventories were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Raw materials	2,158	1,865	2,089
Work-in-process	200	186	192
Finished goods	2,156	2,240	1,995
Total inventories	4,514	4,291	4,276

CRH Form 10-Q 13

7. Goodwill

The changes in the carrying amount of goodwill were:


in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Carrying value, December 31, 2023	4,417	2,752	1,362	627	9,158
Acquisitions	1,120	57	(3)	(3)	1,171
Foreign currency translation adjustment	(17)	(6)	(41)	(16)	(80)
Divestitures	-	-	(197)	-	(197)

Reclassified from held for sale	-	-	199	-	199
Carrying value, June 30, 2024	5,520	2,803	1,320	608	10,251

in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Carrying value, December 31, 2022	4,407	2,517	1,763	512	9,199
Acquisitions	34	240	38	86	398
Foreign currency translation adjustment	8	(5)	57	29	89

Impairment charge for the year	(32)	-	(295)	-	(327)
Reclassified as held for sale	-	-	(201)	-	(201)
Carrying value, December 31, 2023	4,417	2,752	1,362	627	9,158

in $ millions	Americas Materials Solutions	Americas Building Solutions	Europe Materials Solutions	Europe Building Solutions	Total
Carrying value, December 31, 2022	4,407	2,517	1,763	512	9,199
Acquisitions	18	(8)	-	68	78
Foreign currency translation adjustment	7	3	43	8	61


Carrying value, June 30, 2023	4,432	2,512	1,806	588	9,338

There were no charges for goodwill impairment in the six months ended June 30, 2024 and June 30, 2023.

CRH Form 10-Q 14

8. Additional financial information

Other current assets were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Prepayments	343	285	241
Other	361	193	163
Total other current assets	704	478	404

Accrued expenses were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Accrued payroll and employee benefits	966	1,066	920
Other accruals	1,306	1,230	1,415
Total accrued expenses	2,272	2,296	2,335

Other current liabilities were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Dividends payable	-	750	-
Construction contract liabilities	448	439	329
Insurance liability	162	171	176
Income tax payable	26	129	177
Other	786	583	676
Total other current liabilities	1,422	2,072	1,358

Other noncurrent liabilities were:


	June 30	December 31	June 30
in $ millions	2024	2023	2023
Income tax payable	712	712	632
Asset retirement obligations	290	310	352
Pension liability	250	254	278
Insurance liability	259	260	257
Other	667	660	654
Total other noncurrent liabilities	2,178	2,196	2,173

CRH Form 10-Q 15

9. Debt

Long-term debt was:


			June 30	December 31	June 30
in $ millions	Effective interest rate		2024	2023	2023
Long-term debt
(U.S. Dollar denominated unless otherwise noted)

0.875% euro Senior Notes due 2023	0.92	%	-	-	543
1.875% euro Senior Notes due 2024	2.02	%	-	663	651
3.875% Senior Notes due 2025	3.93	%	1,250	1,250	1,250
1.250% euro Senior Notes due 2026	1.25	%	802	829	814
3.400% Senior Notes due 2027	3.49	%	600	600	600
4.000% euro Senior Notes due 2027	4.13	%	535	553	-
3.950% Senior Notes due 2028	4.07	%	900	900	900
1.375% euro Senior Notes due 2028	1.42	%	642	663	651
5.200% Senior Notes due 2029	5.30	%	750	-	-
4.125% Sterling Senior Notes due 2029	4.22	%	506	509	506
1.625% euro Senior Notes due 2030	1.72	%	802	829	814
4.000% euro Senior Notes due 2031	4.10	%	802	829	-
6.400% Senior Notes due 2033 (i)	6.43	%	213	213	213
5.400% Senior Notes due 2034	5.52	%	750	-	-
4.250% euro Senior Notes due 2035	4.38	%

CRH PUBLIC LTD CO [CRH] Filings
10-Q	[2024-08-08]
10-Q	[2024-05-10]
10-K	[2024-02-29]
20-F	[2023-03-10]
20-F	[2022-03-11]
20-F	[2021-03-12]
20-F	[2020-03-06]
20-F	[2019-03-08]
20-F	[2018-03-09]
20-F	[2017-03-10]
20-F	[2016-03-16]
20-F	[2015-03-12]
20-F	[2014-03-13]
20-F	[2013-03-27]
20-F	[2012-03-28]