• Hanson PLC Trading Statement
Hanson, the international building materials company, is issuing this update in advance of its preliminary results (for the 12 months ending December 31, 2001) which will be announced on February 21, 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. This encouraging performance reflects progress made in respect of the group's 2001 '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.
The group's North American business, 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 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 is experiencing a reasonably strong finish to 2001 due largely to mild U.S. weather. However, it is prudent to remain cautious about the outlook for 2002 in North America, despite continuing strength in TEA-21 related output. In its other principal markets, Hanson expects growth in the UK and Australia, continued strength in Spain and weaker trading in Hong Kong.
