May 4 2006
Speaking on 26 April 2006 at the AGM of Hanson PLC, Alan Murray, Chief Executive, made the following comments regarding the group's outlook:
"Our view on the outlook for 2006 remains substantially the same as reported two months ago. We expect demand and pricing in the US to remain strong and we have seen a good first quarter. As anticipated, the start to the year in the UK has been slower than the same period last year. Australia has had a good start although for the full year demand may be below the strong levels in 2005. The increase in energy costs incurred in 2005 will impact our annual cost base in 2006, despite our cost reduction initiatives. We will remain focussed on increasing our prices to recover these costs.
Corporate Development progress has been very pleasing and we have completed or agreed eleven acquisitions to date in 2006 for a total consideration of approximately £515m. 90% of this investment is represented by three acquisitions. In January, we announced the acquisition of PaverModule, one of the top two suppliers of concrete pavers in Florida. In March, we acquired Civil and Marine for £245m. Civil and Marine is the UK's leading producer of ground granulated blast furnace slag, a cement substitute, and also has operations in Florida and the Czech Republic. Thirdly, we have agreed to acquire Material Service, the thirteenth largest producer of aggregates in the US, for approximately £170m. This transaction is expected to be completed in the second quarter of this year. The eight smaller transactions include operations in the UK, US, Australia and Spain.
Overall, we continue to expect to make further progress in 2006 based on our strong asset base and market positions, ongoing financial discipline and continued investment in acquisitions."