Hanson PLC looks to keep moving forward in 2005

Pit & Quarry, Feb, 2005

Hanson PLC issued a trading statement in advance of its February 24 announcement of its preliminary results for the year ending December 31, 2004. Hanson anticipates reporting a profit before tax and exceptional items for 2004 in line with expectations. Currency movements have reduced full year profit before tax and exceptional items by approximately $14 million.

As anticipated at the time of the interim results announcement in July 2004, Hanson has experienced increased operating profit and margins in North America compared to the second half of 2003. This reflects operational improvements and selling price increases achieved during the period.

In line with expectations, volumes in the U.S. Aggregates division have remained stable through 2004 and margins are ahead of 2003. Price increases have been implemented to offset increased input costs of fuel, bitumen and cement. Cost reduction initiatives are proving successful and targeted savings for 2004 of $17 million have been achieved. Hanson expects to achieve the annualized $30 million cost savings target set for 2005.

U.S. operating profit for the full year is expected to benefit from $8 million of property profit based on transactions completed to date and a reduction of $8 million in the pension charge compared to 2003, offset by about 20 million of adverse foreign exchange impact.

Growth through bolt-on acquisitions remains a strategic priority for Hanson and 2004 acquisition spending to date totals about $85 million. Operations in Hanson's major markets in the U.S., UK and Australia are expected to benefit from stable underlying demand in 2005 and from on-going management initiatives.