RMC cautious for 2003 as German business struggles

RMC Group, the world's largest ready-mixed concrete producer, is remaining cautious about the outlook for 2003 as the performance of its German business continues to cause concern.

"Despite management actions to reduce costs and improve efficiency, if prices do not recover during the remainder of the year, a material loss is expected to be recorded in Germany," a RMC statement said.

Accounting for around 15% of group turnover, RMC's German operation has seen demand for cement and concrete slump and prices slide amid surplus production capacity.

As for its UK division, RMC said sales of aggregates and ready-mixed concrete had fallen during the first half of 2003 compared with the same period last year.

Interim results for the six months ended on 30 June are due to be released on 5 September.