Operating profit at Allied Building Products jumped 22% from the year prior to reach €45 million (US$62.3 million) for 2011, according to the year-end report of its parent company, Irish building material giant CRH. The report (Allied's numbers are on page 11), which was released on Wednesday, revealed an 8% in sales to €1.33 billion (US$1.81 billion), as well as 8% increase in earnings before interest, taxes, depreciation, amortization and impairment charges (EBITDA), which along with operating profit excluded profit on disposals, to €65 million (US$90.3 million).
CRH said it continued to streamline Allied’s organizational structure as the company incurred restructuring costs of €1 million (US$1.39 million), which was equal to 2010’s charge.
“[Allied Building Products] has continued its focus on purchasing, logistics, and pricing initiatives and rationalization of administrative and geographic oversight functions, thereby increasing efficiency, control, and profitability,” CRH said.
Organic sales grew €133 million (US$184.9 million) while sales from acquisitions rose €22 million (US$30.6 million) for the year. Those results were offset by a €59 million (US$82 million) decline in exchange rates. Operating profit grew by €11 million (US$15.3 million), but was offset by a total decline of €3 million (US$4.2 million) from acquisitions and exchange.
During 2011, Allied complete six acquisitions, the largest of which featured United Products, a Minnesota-based distributor with branches throughout the Upper Midwest. In all, the company added 27 locations to its footprint.
Exterior building products accounted to 85% of the company’s EBITDA as sales volume for asphalt shingles rose 13% in 2011. Interior products accounted for the remaining 15% of EBITDA as the new construction stabilized and wallboard shipments remained flat year-over-year.
EBITDA accounted for 4.9% of sales, up slightly from 2010’s 4.8%, while operating profit accounted for 3.4% of sales, also a slight increase over the 3% reported for 2010.
Overall, year-end sales at CRH increased 5% to €18.08 billion (US$25.13 billion), while operating profit jumped 25% to €871 million (US$1.21 billion).