Weak dollar affects Hanson’s bottom line

Hanson have reported a dip in profits for the first six months of the year as the arrangements for the takeover by HeidelbergCement are finalised.
The company has delivered an operating profit of £226.6m, down £1.8m from £228.4m for the same period in 2006. Profit before tax slid further, down £11.8m to £181.8m from £193.6m, but turnover saw an increase of £45.7m, rising to £2,043.9m from £1,998.2m.

The company has pointed to the US and a weak dollar to explain the decline saying the period had seen “significant residential demand weakness in North America” adding that the “adverse weather conditions” had impacted sales in the US, UK and Australia.

Chief executive Alan Murray described the company’s performance the interim results as a set of “solid results against the background of challenging conditions.”

He also announced that shareholders had approved the Scheme of Arrangement regarding HeidelbergCement’s acquisition of Hanson at 1100 pence per ordinary share. “As anticipated,” said Mr Murray, “we therefore expect the acquisition to complete at the end of August, assuming all necessary approvals are received and conditions are satisfied or waived.”

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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