Hanson expects 'solid' performance in 2003

Interrnational building materials company Hanson has revealed that it expects to deliver a solid performance in 2003 in spite of the uncertainty which currently surrounds the US economy.

Speaking at Hanson's AGM today (Thursday), Christopher Collins, chairman, and Alan Murray, chief executive, said: "Our healthy balance sheet and strong cash flow provide a good degree of financial flexibility.  We will continue to invest in value adding bolt-on
acquisitions and capital expenditure."

In Hanson's 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," they said. "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." 

Hanson's 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, while in the UK, the building products division has also performed well even though volumes in the UK Aggregates division are currently lower than in 2002.