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[May 2004]
Hanson Trading Update
At Hanson PLC's AGM, the Chief Executive Alan Murray made the following comments regarding the group's current trading and outlook:
"With four months of the year behind us, the overall outlook for 2004 remains broadly in line with what we indicated at the time of our February preliminary results announcement.
"Our North American business has started the year well. Helped by milder weather and better cost performance, the encouraging trading conditions witnessed towards the end of last year have continued into 2004. In particular, year to date Aggregates and Brick & Tile volumes are comfortably ahead of the prior year period, while the Pipe & Products order book is currently stronger than at the same time last year.
"In contrast, the UK market has been slow, with lower volumes in all major products. Although expectations are that Building Products volumes should move ahead once the construction season gets fully underway, weakness in roads-related demand remains a concern for the Aggregates division. As previously indicated, UK progress will be affected by higher pension costs.
"In the group's other principal market, Hanson Australia seems set for another strong year. Despite residential approvals starting to slow, infrastructure related activity has helped ensure continued price and volume growth in the major product areas.
"Finally, good progress continues to be made in implementing the US and UK cost saving initiatives and the group remains on target to deliver savings from these of £17 million in 2004.
"Notwithstanding the likely impact of dollar weakness on sterling translated results, plus the continued uncertainty regarding the timing of the replacement for the TEA-21 US infrastructure programme, the group anticipates a return to growth in 2004."
ENDS