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[June 2003]
Hanson: Chairman/CEO Comments
At the recent AGM of Hanson PLC, Christopher Collins, Chairman, and Alan Murray, Chief Executive, made the following comments regarding the outlook for the group:
"Our view of the outlook for Hanson in 2003 remains unchanged from our preliminary results statement on February 20.
"In our largest market, North America, weather patterns in the first four months of the year have been worse than 2002 and, in many regions, the construction season has been slow to start. Together with the previously anticipated impact of slower underlying demand, plus a weaker dollar, first half trading profit comparisons in North America will therefore be unfavourable. However, on the basis of recent trading, we currently believe that the impact of weather-related delays in product shipments will be recovered over the balance of the year.
"Our operations in the UK and Australia continue to provide some protection against short-term earnings pressure in North America. Trading profit in both of these markets is ahead of 2002 for the first four months of the year. Australia has experienced continuing strong price improvement and solid demand levels.
"In the UK, the Building Products division has also performed well. Volumes in the UK Aggregates division however are currently lower than in 2002, although unusually strong volumes at the start of last year is a contributing factor in this comparison.
"Our healthy balance sheet and strong cash flow provides a good degree of financial flexibility. We will continue to invest in value adding bolt-on acquisitions and capital expenditure.
"Although still early in the year, and much uncertainty surrounds the US economy in particular, our current expectation remains that Hanson will deliver a solid performance in 2003."
ENDS