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[July 2002]
Encouraging Half-Year for Hanson
Hanson PLC expects to report pre-tax, pre-exceptional profit for the six months to 30 June 2002 above the £129.2 million reported last year. The company said that this encouraging performance principally reflects stronger trading in the UK and Australia, together with the benefit of lower net interest expense.Hanson Building Materials America's (HBMA) trading to date has confirmed its earlier cautious approach to 2002. Although mild weather helped trading in the early part of the year, performance in the traditionally busier second quarter has been mixed. HBMA's concrete pipe and products and brick operations continued to perform well, a result of heritage margin improvements as well as contributions from recent concrete pipe acquisitions. Overall, however, HBMA's trading profit in the first half is expected to be below the 2001 level.
Hanson Building Materials Europe (HBME) has enjoyed good trading so far this year, particularly in its main UK aggregates business, where good weather, infrastructure investment and construction activity in the South East of England have contributed to volume growth. Selling price increases and better cost performance have also been achieved. Similarly, the UK brick business has benefitted from higher volumes and prices, plus cost savings resulting from its move into HBME in January 2002.
On the continent, first half trading profit is expected to be in line with the prior year, thanks to good underlying demand in Spain and better cost performance in Israel and Germany.
Hanson Australia has enjoyed a much improved first half; strong increases in both aggregates and ready-mixed concrete volumes and prices have improved profitability after last year's decline. However, as previously indicated, Hanson Pacific's results will be significantly affected by weakness and increased competition in the Hong Kong ready-mixed concrete market.
ENDS