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[February 2004]
Hanson Preliminaries
Preliminary results 2003 for Hanson PLC show turnover (including joint ventures and associates) totalling £3.9565 billion, a decrease of 1.1% over 2002. Turnover from continuing operations was £3.8349 billion, an increase of 2.7%, with 2003 acquisitions contributing £64.2 million and movement in the US dollar accounting for a £123.6 million reduction.
2003 operating profit before exceptional items (after goodwill amortisation of £56.9 million and including JVs and associates) fell by £39.1 million to £394.2 million. There was a strong performance from Hanson Australia but trading conditions remained tough in the key North American and UK markets. In the USA it was a year of two distinct halves: poor weather adversely affected demand in the first half, but this was followed by a catch-up in the second half with volumes recovering from September onwards.
Two additional factors had a significant impact on the group's operating profit, these being the translation impact of the weakening US dollar (£19.4 million) and the £26.2 million increase in the group's pension charge. Additionally, reorganisation costs of £10.6 million were incurred in 2003 in the group's North American and UK businesses.
Profit on ordinary activities before exceptional items and taxation was £319.7 million, down from £350.3 million in 2002. The tax rate on pre-exceptional profit was 24.7% against 26.1% last time. The reduction in the rate reflected the lower proportion of comparatively higher taxed US profits. Earnings per share before exceptional items were 32.7p, down 6.8% from 35.1p in 2002.
The group's cash flow remains strong. In 2003 operating cash flow was £536.5 million after a contribution of £74 million into the group's main pension schemes. Strong cash flow enabled Hanson to increase its investment in plant and equipment as well as continuing its programme of bolt-on acquisitions.
ENDS