Triple blow cuts Hanson's profits

A RISING pensions bill, the weakening dollar and poor trading in its key California market cut pre-tax profits at construction materials giant Hanson by 9% last year to an underlying £319m.

Further asbestosis legal claims against the company totalling £76m, making a potential total liability of £166mi, plus £87m of writedowns on assets in the US and Asia, halved group profits to £137m.

Chief executive Alan Murray said the outlook for 2004 was broadly positive. But for a £26m charge in plugging its pension fund deficit - which will need another £25m this year - plus a £19m hit on converting dollar earnings to pounds, underlying profits would have been up, he said.

'A more-resilient trading environment in the US, price increases, a newly restructured US management team and ongoing cost reduction measures across the group should ensure a return to growth,' he added.

In the UK profits were marginally ahead. Hopes of a pick-up rest with Government investment initiatives.

Dividend for the year is lifted 10% to 16.95p.