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CRH only uses commonly traded and non-leveraged instruments.
−Removed: These contracts are entered into primarily with major banking institutions and utility companies, while CRH actively monitors its exposure to counterparty risk through the use of counterparty approvals and credit limits, thereby minimizing the risk of counterparty loss.
−Removed: The following discussion presents the sensitivity of the market value, earnings and cash flows of the Company’s financial instruments to hypothetical changes in interest and exchange rates assuming these changes occurred at June 30, 2024.
+Added: These contracts are entered into primarily with major banking institutions and utility companies, while CRH actively monitors its exposure to counterparty risk through the use of counterparty approvals and credit limits, thereby managing the risk of counterparty loss.
+Added: The following discussion presents the sensitivity of the market value, earnings and cash flows of the Company’s financial instruments to hypothetical changes in interest and exchange rates assuming these changes occurred at September 30, 2024.
Interest Rate Risk
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Under these arrangements, the Company agrees to exchange, at specified intervals, the difference between fixed and benchmark floating interest rates calculated by reference to an agreed-upon notional principal amount.
−Removed: At June 30, 2024, of total debt including overdrafts, finance leases and the impact of derivatives, the Company had fixed rate debt of $9.8 billion and floating rate debt of $3.6 billion, representing 73% and 27% respectively.
−Removed: The equivalent figures as at December 31, 2023, were fixed rate debt of $9.1 billion and floating rate debt of $2.7 billion, representing 77% and 23% respectively, and as at June 30, 2023, fixed rate debt of $7.6 billion and floating rate debt of $2.4 billion, representing 76% and 24% respectively.
−Removed: The Company’s interest rate swaps at June 30, 2024, were $1.4 billion, compared to $1.4 billion as at December 31, 2023 and $1.4 billion as at June 30, 2023.
−Removed: Cash and cash equivalents at June 30, 2024, were $3.1 billion, compared to $6.4 billion at December 31, 2023 and $4.3 billion at June 30, 2023, which was all held on short-term deposits and investments.
+Added: At September 30, 2024, of total debt including overdrafts, finance leases and the impact of derivatives, the Company had fixed rate debt of $10.4 billion and floating rate debt of $3.8 billion, representing 74% and 26% respectively.
+Added: The equivalent figures as at December 31, 2023, were fixed rate debt of $9.1 billion and floating rate debt of $2.7 billion, representing 77% and 23% respectively, and as at September 30, 2023, fixed rate debt of $9.4 billion and floating rate debt of $2.2 billion, representing 81% and 19% respectively.
+Added: The Company’s interest rate swaps at September 30, 2024 whereby the Company swaps from fixed interest rates to floating interest rates, were $1.4 billion, compared to $1.4 billion as at December 31, 2023 and $1.4 billion as at September 30, 2023.
+Added: The Company’s interest rate swaps at September 30, 2024 whereby the Company swaps from floating interest rates to fixed interest rates, were $0.2 billion, compared to $nil billion as at December 31, 2023 and $nil billion as at September 30, 2023.
+Added: Cash and cash equivalents at September 30, 2024, were $3.0 billion, compared to $6.4 billion at December 31, 2023 and $5.7 billion at September 30, 2023, which was all held on short-term deposits and investments.
Sensitivity to interest rate moves
−Removed: At June 30, 2024, the before-tax earnings and cash flows impact of a 100bps increase in interest rates, including the offsetting impact of derivatives, on the variable rate cash and debt portfolio would be approximately $5 million unfavorable ($37 million favorable at December 31, 2023 and $19 million favorable at June 30, 2023).
+Added: At September 30, 2024, the before-tax earnings and cash flows impact of a 100bps increase in interest rates, including the offsetting impact of derivatives, on the variable rate cash and debt portfolio would be approximately $8 million unfavorable ($37 million favorable at December 31, 2023 and $35 million favorable at September 30, 2023).
Foreign Exchange Rate Risk
−Removed: CRH’s exchange rate exposures result primarily from its investments and ongoing operations in countries outside of the United States and other business transactions such as the procurement of products and equipment from foreign sources.
+Added: CRH’s exchange rate exposures result primarily from its investments and ongoing operations in countries outside of the United States and other business transactions such as the procurement of products, services and equipment from foreign sources.
Fluctuations in foreign currency exchange rates may affect (i) the carrying value of the Company’s net investment in foreign subsidiaries;
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In addition, the Company may enter into foreign currency contracts that are not designated in hedging relationships to offset, in part, the impacts of changes in value of various non-functional currency denominated items including certain intercompany financing balances.
−Removed: Dollar equivalent gross notional amount of the Company’s foreign exchange forward contracts was $4.2 billion at June 30, 2024, compared to $1.6 billion at December 31, 2023 and $1.7 billion at June 30, 2023.
+Added: Dollar equivalent gross notional amount of the Company’s foreign exchange forward contracts was $4.4 billion at September 30, 2024, compared to $1.6 billion at December 31, 2023 and $1.7 billion at September 30, 2023.
Holding all other variables constant, if there was a 10% weakening in foreign currency exchange rates versus U.S.
−Removed: Dollar for the portfolio, the fair market value of foreign currency contracts outstanding at June 30, 2024, would decrease by approximately $113 million, which would be largely offset by a gain on the foreign currency fluctuation of the underlying exposure being hedged.
−Removed: In comparison, the fair market value of foreign currency contracts outstanding at December 31, 2023 would increase by approximately $2 million and at June 30, 2023, would increase by approximately $13 million, largely offset by a loss on the underlying exposure being hedged.
+Added: Dollar for the portfolio, the fair market value of foreign currency contracts outstanding at September 30, 2024, would decrease by approximately $104 million, which would be largely offset by a gain on the foreign currency fluctuation of the underlying exposure being hedged.
+Added: In comparison, the fair market value of foreign currency contracts outstanding at December 31, 2023 would increase by approximately $2 million and at September 30, 2023, would increase by approximately $18 million, largely offset by a loss on the underlying exposure being hedged.
Commodity Price Risk
−Removed: Some of the Company’s products contain significant amounts of commodity-priced materials, predominantly fuel oil, carbon credits, coal, and electricity, which are subject to price changes based upon fluctuations in the commodities market.
+Added: Some of the Company’s products use significant amounts of commodity-priced materials, predominantly oil, electricity, coal and carbon credits which are subject to price changes based upon fluctuations in the commodities market.
This price volatility could potentially have a material impact on our financial condition and/or our results of operations.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.