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[July 2004]
Hanson Trading Update
In its first half trading update, Hanson PLC said that UK Building Products' progress had been impacted by higher pension costs. Additionally, although price growth remained strong, brick volumes were weaker, while higher than anticipated gas and steel costs were also a feature. However, Hanson said that, based on recent experience, volume trends in all product areas were anticipated to improve in the second half.
In the USA, overall Building Products had a difficult first half. However, the Brick & Tile operation continued to perform strongly, helped by the successful Athens Brick acquisition and good underlying residential related demand. The brick business did experience higher natural gas costs.
Overall, Hanson said it anticipated a decrease in first-half pre-tax, exceptional profit, which was 120.6 million in 2003. This is after approximately a net 5 million of higher pension costs, with UK increases partially offset by North America, and an adverse exchange effect, principally US dollar related, of approximately 5 million. Without these two factors, the group said it would have expected to report a slight year-on-year improvement in first half profitability (official reporting date: 28 July 2004).
ENDS