Financial Reporting on Cement Roadstone Holdings Plc - Dissertation Example

In the year 2012, the operations of CRH Plc faced mixed economic conditions throughout all the countries in the world. For example, as on one hand the main markets in the United States faced improvement in its overall economic activity, while on the other side economic activity deteriorated in Europe, particularly in Netherlands due to a fall in the continued confidence of investors and consumers in Europe. As a result, the profit and earnings per share of the company in 2012 dropped by 5% and 7%, as compared to 2011.

The profit and earnings per share of 2012 amounted to €674 million and 76.5c, whereas in 2011 it amounted to €711 million and 82.6c. The outcomes of 2012 resulted due to the progress in the operations of America helped by a strong recovery in residential construction which lead to an improvement in the overall economic activities in the United States. . y components- Positive exchange effects of 2012 resulted due to the rise in the US dollar by 8% which lead to the rise sales and pre-tax profits by approximately 4%.

Contributions by acquisitions made in 2011 and 2012 lead to a rise in sales revenue of €603million and operating profit of €33 million. Cost incurred in 2012 of €60million was similar to that of 2011(€61 million). Total impairment charges in 2012 were €174 million which was significantly higher than the previous year. In 2012, revenue generated from ongoing operations decreased by €384million. As compared to 2011, earnings per share declined by 7% (82.6c in 2011 to 76.5c in 2012) and cash earnings per share increased by 7% (194.

0c in 2011 to 206.8c in 2012). In 2012 Operating profit margin declined to 4.5% and EBITDA margin by 0.4% as the selling price could not recover the increase in input costs. The price of the share of CRH Plc was €15.30 in 2012, as it showed a slight change as compared to 2011 (€15.36). But the dividend was 62.5c and the net return to the shareholders was positive 4%. The overall performance of CRH Plc. in 2012 shows a decline as compared to the performance in 2011. The decrease in the inventory turnover ratio and total assets turnover ratio as compared to 2011 also state the above.

Total shareholders’ equity also remained unchanged in 2012 as the net comprehensive income for the year of €0.4 billion was balanced by dividends of €0.4 billion. The year-end net debt of €3 billion was only €0.5 billion lower than the previous year. This is reflected in the debt equity ratio, which also resulted in a decrease as to the previous year. The percentage of net debt to total equity reduced to 28%. But since assets were more as compared to the equity, proprietary ratio