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[January 2002]
Hanson PLC Trading Update
Hanson PLC has issued an update ahead of its preliminary results for the year ended 31 December 2001, which will be announced on 21 February 2002.Hanson expects to report 2001 pre-tax, pre-exceptional profit that is both slightly ahead of current market consensus and above the £318.2 million reported in 2000. Hanson says that this encouraging performance reflects progress made in respect of the group's 'back to basics' initiatives to pass on higher costs through increased selling prices, reduce the underlying cost base, improve procurement and focus on under-performing and non-core assets.
Hanson Building Materials America (HBMA) is expected to complete the year with overall heritage aggregates price and volume increases in line with the guidance given throughout the year. Aggregates operations in the eastern US and in Texas have benefited from a mild fourth quarter, although earlier signs of softening demand in northern California and the Carolinas have remained apparent.
HBMA's concrete pipe and products operation has continued the strong performance reported in the first half. The US brick division maintains a reasonable order book and is making good progress in the reorganisation that was initiated earlier in the year.
Hanson Quarry Products Europe continues to perform in line with its first half experience, with the UK enjoying good infrastructure-related demand in the south and south east and with Spain continuing to perform well. The reorganisation of its UK aggregates operation is proceeding well and will help improve overall cost performance.
Second half trading in Hanson's other divisions has been mixed. Hanson Bricks Europe has performed reasonably well despite a slower UK housing market, higher natural gas costs and a difficult market in continental Europe. Although demand in Australia has recently stabilised, prices remain very weak and the effects of earlier systems issues continue to work through. Hanson Pacific remains reliant on the Hong Kong market, where results have held up well.
ENDS