Printer Friendly

HANSON REPORTS FULL YEAR TRADING PROFIT OF $1.548 BILLION

    NEW YORK, Dec. 2 /PRNewswire/ -- "For the year to Sept. 30, 1993," Lord Hanson, Chairman of Hanson PLC (NYSE: HAN), said today, "Hanson PLC has produced a very good trading profit of $1.548 billion ($1.555 billion), which emphasizes our underlying strength against the background of tough economic conditions.  The coal strike, in this financial year alone, cost Peabody an estimated $187 million.  Our policy has always been to increase dividends where possible and, depending on current trading and the outlook, we shall have this under active consideration during 1994."
    Pre-tax profit was $1.52 billion, including exceptional profit of $36 million ($1.92 billion including $257 million extraordinary items). Sales were $14.6 billion ($13.2 billion).  The forecast return to a normal tax charge and reduced profit for extraordinary items led to diluted earnings per ADR of $1.13 ($1.66).  The net quarterly dividend will be 15.14p per ADR and will be made by the authorized depositary, Citibank, N.A., on Jan. 11, 1994 to holders of record at Dec. 13, 1993. The next payment will be at the beginning of April 1994.
    "A positive recovery," Lord Hanson added, "is now evident in most of our major markets and we believe trading profit will continue to improve in 1994.  Against that, however, increases in the net interest cost will be a significant factor.  Our immediate policy, already under way, is to reduce debt by a phased program of disposal of some subsidiaries not seen to be 'major activities', which will give rise to exceptional profit this year."
    Derek Bonham, Chief Executive, said, "In building Hanson to serve shareholders well in the years ahead, we have acquired businesses in the last two years with total assets in excess of $9 billion and, as a result, our net debt now represents some 86% of shareholder funds.
    "We financed the US acquisition of Quantum from our sterling resources, switching 2 billion pounds sterling into dollars, further increasing our dollar net assets to about 54% of total equity.  With our trading strength, our major investment in business assets during the recession and the recovery potential of our cyclical businesses, we have great faith in the ability of your company to grow in the future."
    William Landuyt, Finance Director, said, "Cash flow from operations was $452 million ($609 million) and disposals generated another $250 million.  The impact of translation, the cash cost and net borrowings assumed for acquisitions and an aggressive capital expenditure program combined to give net debt at the balance sheet date of $5.08 billion ($1.16 billion).  Acquisitions, the narrowing of the sterling/dollar interest spread, the shorter maturities with which we begin 1994 and the switch of sterling deposits into dollar deposits, indicate an increase in net interest expense for 1994 of about $411 million based on current market rates before any benefit for proceeds from recently announced disposals."
                          Report from the USA
    PROFIT OF $746 million ON SALES OF $7.25 billion
    Hanson Industries' profit from trading and associates amounted to $746 million ($793 million) on sales of $7.25 billion ($5.82 billion). A report by Lord White, Chairman and David Clarke, Chief Executive, said:  "A high performance level has been maintained despite the slow recovery of the US economy and the protracted coal strike.  The year saw significant investment in both capital expenditure and the acquisition of promising new operations.  The largest to date was Quantum on Sept. 30, 1993, for $3.4 billion."
    Quantum, a world leader in the manufacture of polyethylene, has modern plants, world class research facilities and strong management. "It is expected," said Clarke, "to be a positive contributor to earnings in 1994 through continued cost reduction, closure of some uneconomical plants and interest savings on debt.  Longer term, with increasing demand, it should make a significant contribution to profit.  Together with SCM Chemicals, Quantum makes Hanson a major participant in the US chemicals industry."
    Despite the miners' strike, which seriously affected Peabody Coal and Eastern Associated Coal, Hanson Industries maintains its long-term enthusiasm for coal, America's main energy source for electric power. During the year, Gold Fields Mining assets were exchanged for Santa Fe Pacific's Lee Ranch mine, the largest surface coal mine in New Mexico. Peabody also acquired Costain's Australian coal assets, expanding coal operations into the Australian and Pacific Rim markets.
    The acquisition of Watt Housing, operating in California, Arizona and Nevada, complements Beazer Homes' housebuilding activities in the southeastern USA.
    Results highlights
    Cavenham Forest Industries achieved exceptional results because of sharply higher timber and lumber prices.  The reorganized Beazer aggregates operations saw increased construction activity regionally, although the proposed increase in federal infrastructure spending has yet to flow through on any large scale.  There were again excellent results for many smaller businesses including Jacuzzi, Ertl, Rexair, Garden State Tanning, Farberware and Tommy Armour.
    US OUTLOOK:  "Our financial strength and operating ability," Lord White concluded, " have seen us through the weak economic environment and most of our businesses have exceptional trading profit potential in an expanding economy. As the recovery gathers steam,  we look forward to a period of sustained real growth in chemicals, construction, material handling, forest products and coal."
             Report from UK and US Chief Operating Officers
                    Anthony Alexander and John Raos
    IMPERIAL AND CAVENHAM SHINE AS CONTRIBUTORS TO $1.548bn PROFIT
    The outstanding contributors to the year's trading profit of $1.548bn ($1.555bn) were Imperial Tobacco and Cavenham Forest Industries.
    INDUSTRIAL Products
    Coal mining - Trading Profit $105mn ($235mn).  Sales $1.513bn ($1.512bn).  Peabody has continued to pursue increased productivity and global capacity.  Recent strategic acquisitions further strengthen its position as the industry leader.  Coal reserves now total 9.7 billion tons of which 45 percent are low sulphur.
    Chemicals - Trading Profit $172mn ($173mn).  Sales $911mn ($812mn). The titanium dioxide global market continues to be affected by overcapacity with average selling prices down approximately 6.5 percent. SCM Chemical's worldwide capacity is currently 450,000 tons, 83 percent by the modern chloride process.  SCM is now the world's second largest chloride producer and the third largest maker of titanium dioxide.  All plants are at near capacity due to customer preference for the chloride process.  Major investment in shipping capacity has enabled the US plants to increase sales to the coatings industry.
    SCM Glidco Organics (aroma chemicals for soaps and detergents) had its fourth consecutive record year with a 7 percent increase in profit to $25 million.  SCM Metal Products reported good results.
    Material handling - Trading profit $34mn ($63mn).  Sales $386mn ($386mn).  A surplus of used cranes for hire, especially in Europe, resulted in aggressive discounting and reduced margins, but Grove Crane's North American operations remained profitable, maintaining US market share leadership at 56 percent.  Grove National's telescopic truck-mounted products had excellent results, market share increasing 6 percent to 52 percent.  New products are planned for 1994 in North American and world markets.
    Other industrial products - Trading profit $124mn ($117mn).  Sales $1.23bn ($1.04bn).  Smith Meters delivered to British Gas 70,000 of its new electronic cashless prepayment meters. It also won a contract to supply over 300,000 domestic gas meters to Egypt during the next three years.
    The automotive group, including Garden State Tanning and Leon Plastics, had a 39 percent increase in profit to a record $27.4 million, benefiting from an 8 percent uplift in US car sales.  Leon sales doubled with a fivefold increase in profit.
    Hanson Office Products' profit, including office furniture, was slightly ahead at $30.8 million.
    CONSUMER Products
    Tobacco - Trading Profit $459mn ($419mn).  Sales $4.59bn ($4.45bn). Imperial Tobacco reached a new record profit level.  Productivity gains and market share improvement more than offset the declining market, increased competition and duty increases exceeding the rate of inflation.
    Against the increased competition, Imperial's market share has grown to 35.5 percent.  The main brands, Embassy and Regal in the premium sector and Superkings and Lambert & Butler in the low-price sector, continue to flourish.  The cigar, handrolling and pipe tobacco markets are experiencing a period of decline, but Classic, Golden Virginia and St Bruno continue to perform well.  Good results have followed the launch of a new aromatic pipe tobacco, Dutch Blend.
    The November UK budget imposed the year's second substantial increase in tobacco duty, adding a further twist to the upward consumer cost spiral and leaving British excise levels at double those in southern Europe.  At the same time, dismantling European customs barriers diminishes Britain's excise revenues and penalizes manufacturers, their employees and customers.
    Other consumer products - Trading Profit $204mn ($164mn).  Sales $1.47bn ($1.09bn).  The US leisure companies had excellent earnings. Valley (dart games and pool tables) contributed $12.9mn, up 38 percent. Ertl Toys' profit was a record $23.3 million and the popularity of Tommy Armour golf products was undiminished.
    Rexair's (vacuum cleaners) profit was another record $37.1 million, up 9 percent and Farberware maintained its market leadership in cookware.  Strong spring sales of lawn and garden tools contributed to Ames' record year.
    Seven Seas, UK brand leader in vitamin supplements, matched the previous year's record results.  Eveready South Africa, holding a dominant position in the southern African dry battery market, again reported increased profit.
    BUILDING Products
    Aggregates - Trading Profit $109mn ($121mn).  Sales $2.09bn ($1.68bn).  Acknowledging mineral extraction to be a controversial issue, Hanson recognizes its duty to care for the environment and operate in a responsible and sensitive manner.  Aggregates, with which Britain is particularly well endowed, are raw materials essential to the country's growth.
    ARC marginally improved on its previous year as construction materials in Britain emerged from free fall and achieved some stability, albeit at a low level.  ARC is the principal supplier of aggregates and Premix concrete to the new Severn Bridge, currently Britain's largest construction project.  Work was completed on the 7 million pound sterling re-equipment program at the Ingleton quarry in Yorkshire.
    Greenways Landfill was expanded with the acquisition of the principal assets of Econowaste, securing 54 million cubic meters of landfill capacity at 18 locations and making Greenways Britain's third largest owner of landfill resources.
    ARC Pipes has joined forces with Yorkshire Water to develop flexibly jointed ovoid pipes.  With a 32 percent UK market share, ARC Pipes will benefit from future investment by water resources companies.
    Beazer USA Aggregates' operations were restricted by the disastrous floods and recessionary construction markets.  Restructuring measures were taken aimed to improve margins by competitive pricing, cost containment, plant consolidation and customer service.
    Beazer's east coast companies have been consolidated into Spectrum Construction (highway and construction companies) and Benchmark Materials (aggregate companies), thus creating the 50th largest construction company in the USA.  Benchmark's east coast operations reported profit improvements as prices began to firm and volumes increased.  Gifford Hill in Texas reported significant improvement as the decade long depressed economy there has begun to turn.  Kaiser materials and Southwest Construction Materials on the west coast were affected by California's severe recession.
    Forest Products and Lumber - Trading Profit $158mn ($103mn).  Sales $480mn ($331mn).  Timber and lumber prices reached an all time high resulting in record profit for Cavenham Forest Industries and strengthening its position as the eighth largest private timberland holder and the twelfth largest lumber producer in the USA.  Timber harvest of 550 million board feet was similar to the prior year, while new growth exceeded harvest by 33 percent.  Prices remained at historically high levels for most of the year.
    Despite increased log costs, Duke City Lumber and Brown Moulding enjoyed steady growth in sales and profit.
    Housebuilding - Trading Profit $87mn ($67mn).  Sales $697mn ($505mn).  Beazer Homes, Britain's fourth largest housebuilder, again sold nearly 5,000 houses and received many quality awards.  It continued to invest in building land at values reflecting reduced house market prices.  The company benefited from the Housing Initiative announced by the Chancellor, completing sales of 850 units to housing associations. Last month it completed the $42 million purchase of the Walker Group's Scottish housebuilding interests.
    Beazer Homes USA paid $116.3 million for Watt Housing, which sold over 1,000 homes in 1992.
    Other building products - Trading Profit $96mn ($93mn).  Sales $1.08bn ($891mn).  Hanson Brick, the UK market leader, offers an unrivaled range of products.  Over the last year demand for bricks in Britain remained at the low level of around three billion.  Total industry stocks are over one billion bricks.  London Brick has further reduced production capacity and its stocks are down by 20 percent.  The commercial building sector has continued to decline, but there has been a modest increase in housebuilding.  Sales in Britain remained static, but exports increased substantially.  Butterley Brick has been particularly affected by the decline in high value specifier bricks for office blocks and other commercial projects.  Production has been reduced and several high cost works closed.
    Jacuzzi had another record year, helped by the success of its J-Dream showers.  In its three operational areas, Europe led the way with a 25 percent profit increase, North and South America improving by more than 8 percent.  MW Manufacturers (wooden windows) achieved record sales and profit.
    New computer systems enabled Crabtree (electrical products) to perform well in a weak market.  Volex/Marbourne increased profit. Capital has been invested in readiness for the new UK wired-on plug legislation.
    Hanson Lighting's profit increased by 13.3 percent, but pricing remains extremely competitive.  Management changes were made at USI Lighting and Progress Lighting and manufacture was relocated to South Carolina, with encouraging results.
    TRADING OUTLOOK:  "The commitment, hard work and enthusiastic support of our 80,000 employees and experienced management," said Alexander and Raos, "is the platform from which we shall build for the future.  Further capital investment and strategic acquisitions together with the new challenges and opportunities from Quantum will ensure future growth."
    Hanson PLC is a British-American industrial management corporation. In the US, Hanson Industries' operations include Peabody Holding Company, Quantum Chemical, Suburban Propane, SCM Chemicals, Cavenham Forest Industries, Beazer, Grove Crane, Jacuzzi Whirlpool Baths, Tommy Armour Golf, Ames Tools, Farberware Cookware, Garden State Tanning, and Hanson Lighting Group, among others.
    In the United Kingdom, Hanson's holdings include Imperial Tobacco, ARC Aggregates, London Brick, Butterley Brick, Beazer Homes and Smith Meters.
                               HANSON PLC
                  Consolidated Profit And Loss Account
                   for the year ended Sept. 30, 1993
                    (In millions of pounds sterling)
                                   1993        1993         1992
    Sales turnover
     -- continuing operations     9,534                    8,492
     -- acquisitions                134                      ---
                                  9,668                    8,492
     -- discontinued operations      92                      306
                                              9,760        8,798
    Costs and overheads less
     other income                             8,782        7,730
    Operating profit
     -- continuing operations       930                    1,021
     -- acquisitions                 28                      ---
                                    958                    1,021
     -- discontinued operations      20                       47
                                                978        1,068
    Exceptional items
    Continuing operations:
     -- profit on disposal of fixed assets
        and fixed asset investments  17                       39
     -- costs of closures           (14)                     (23)
    Profit on disposal of
     discontinued operations         21                      156
                                                 24          172
    Net interest income                          14           46
    Profit on ordinary activities
     before taxation                          1,016        1,286
    Taxation                                    282          197
    Profit on ordinary activities
     after taxation                             734        1,089
    Dividends                                   551          265
    Retained profit for the year                183          824
    Earnings per ordinary share:
        Undiluted                                15.2p        22.6p
        Diluted                                  15.1p        22.2p
    The exchange rate used for Sept. 30, 1993 was $1.4955 (1992 -- $1.7815).
                        HANSON PLC AND SUBSIDIARIES
          Translation to US $ Income Statement & Capital Employed
                for the year ended Sept. 30, 1993 (UK GAAP)
                               ($ in million)
                           1993                        1992
                          Sales    Capital            Sales    Capital
                 Profit  turnover  employed  Profit  turnover  employed
    By activity
    Industrial
    Coal Mining   105     1,513     6,674      235    1,512     4,881
    Chemicals     172       911       618      173      812       534
    Material
     Handling      34       386       154       63      386       188
    Other         124     1,228       271      117    1,035       235
                  435     4,038     7,717      588    3,745     5,838
    Consumer
    Tobacco
     Products     459     4,592        (9)     419    4,454       (28)
    Other         204     1,473       609      164    1,093       433
                  663     6,065       600      583    5,547       405
    Building
     Products
    Aggregates    109     2,094     6,793      121    1,681     6,056
    Forest products
     & lumber     158       480     1,672      103      331     1,380
    Housebuilding  87       697       339       67      505       230
    Other          96     1,084     1,093       93      891     1,092
                  450     4,355     9,897      384    3,408     8,758
    Trading
     operations 1,548    14,458    18,214    1,555   12,700    15,001
    Equity
     investments   28         -       289       27        -       250
    Discontinued
     operations    30       138         -       70      458       145
    Quantum         -         -     2,005        -        -         -
                1,606    14,596    20,508    1,652   13,158    15,396
    Central expenses
     less property &
     other inc.  (144)                         (55)
    Operating
     profit     1,462                        1,597
    Exceptional
     items (net)   36                          257
    Net interest
     income        21                           69
                1,519                        1,923
    Tax           421                          295
    Net income  1,098                        1,628
    Net income
     per ADR
    -- diluted     $1.13                        $1.66
    By geographical location
    USA           746     7,253    15,667       793   5,818   12,544
    USA - Quantum   -         -     2,005         -       -        -
    UK            694     6,465     2,251       689   6,257    2,411
    Other         136       740       585       100     625      296
    Discontinued   30       138         -        70     458      145
                1,606    14,596    20,508     1,652  13,158   15,396
    The exchange rate used to translate the above figures was that ruling at the 1993 balance sheet date ($1.4955 to pound).
                        HANSON PLC AND SUBSIDIARIES
                Profit, sales turnover and capital employed
                     for the year ended Sept. 30, 1993
                            (millions of pounds)
                           1993                        1992
                          Sales   Capital             Sales   Capital
               Profit   turnover  employed  Profit  turnover  employed
    By activity
    Industrial
    Coal Mining    70     1,012     4,463      157    1,011   3,264
    Chemicals     115       609       413      116      543     357
    Material
     Handling      23       258       103       42      258     126
    Other          83       821       181       78      692     157
                  291     2,700     5,160      393    2,504   3,904
    Consumer
    Tobacco
     Products     307     3,071        (6)     280    2,978     (19)
    Other         136       985       407      110      731     290
                  443     4,056       401      390    3,709     271
    Building Products
    Aggregates     73     1,400     4,542       81    1,124   4,049
    Forest products
      & lumber    106       321     1,118       69      221     923
    Housebuilding  58       466       227       45      338     154
    Other          64       725       731       62      596     730
                  301     2,912     6,618      257    2,279   5,856
    Trading
     operations 1,035     9,668    12,179    1,040    8,492  10,031
    Associated
     undertakings  19         -       193       18        -     167
    Discontinued
     operations    20        92         -       47      306      97
    Quantum         -         -     1,341        -        -       -
                1,074     9,760    13,713    1,105    8,798  10,295
    Central expenses
     less property
     & other inc. (96)                         (37)
    Operating
     profit       978                        1,068
    Exceptional
     items (net)   24                          172
    Net interest
     income        14                           46
                1,016                        1,286
    By geographical location
    USA           499     4,850     10,476     530    3,890   8,388
    USA - Quantum   -         -      1,341       -        -       -
    UK            464     4,323      1,505     461    4,184   1,612
    Other          91       495        391      67      418     198
    Discontinued   20        92          -      47      306      97
                1,074     9,760     13,713   1,105    8,798  10,295
                                 HANSON PLC
                         Consolidated Balance Sheet
                             at Sept. 30, 1993
                            (Millions of pounds)
                           1993                                1992
    Fixed assets
    Tangible             12,195                               9,146
    Investments             226                                 191
                         12,421                               9,337
    Current assets
    Stocks                1,746                               1,318
    Debtors               1,823                               1,441
    Listed investments       48                                   6
    Cash at bank          8,019                               8,439
                         11,636                              11,204
    Creditors - due within one year
    Debenture loans       3,116                               2,263
    Bank loans and
     overdrafts           1,078                               1,881
    Trade creditors         741                                 599
    Other creditors       1,995                               1,511
    Dividend                135                                 132
                          7,065                               6,386
    Net current assets    4,571                               4,818
    Total assets less
     current liabilities 16,992                              14,155
    Creditors - due after
     one year
    Convertible loans       500                                 500
    Debenture loans       3,916                               1,330
    Bank loans            2,805                               3,239
                          7,221                               5,069
    Provisions for
     liabilities and
     charges              5,818                               4,862
    Capital and reserves
    Called up share
     capital              1,262                               1,205
    Share premium
     account              1,190                               1,163
    Revaluation reserve     166                                 166
    Merger and other
     reserves                 -                                  65
    Profit and loss
     account              1,335                               1,625
                          3,953                               4,224
                         16,992                              14,155
    The accounts for the year to Sept. 30, 1993, set out above are abridged.  Full statutory accounts for that year, on which the auditors of the company have made an unqualified report, will be delivered to the Registrar of Companies in due course.
                                 HANSON PLC
                            Cash Flow Statement
                     for the year ended Sept. 30, 1993
                            (Millions of pounds)
                                         1993                    1992
                          Note
    Operating activities
    Net cash inflow from
     operating activities  1              996                   1,090
    Returns on investments
     and servicing of finance
    Interest received                     614                     823
    Interest paid                        (514)                   (747)
    Dividends received from
     associated undertakings                6                       6
    Dividends paid                       (542)                   (510)
    Net outflow from returns
     on investments
     and servicing of finance            (436)                   (428)
    Taxation                             (258)                   (255)
    Net cash inflow before
     investing activities and financing   302                     407
    Investing activities
    Sale of investments                    39                     294
    Sales of businesses    2               62                     135
    Sale of tangible
     fixed assets                          66                      60
    Inflow in respect
     of short-term
     investments           3            9,269                   5,987
    Outflow in respect
     of short-term
     investments           3           (5,689)                 (9,107)
    Purchase of subsidiary
     undertakings (net of
     cash equivalents)     2             (172)                 (1,026)
    Purchase of tangible
     fixed assets                        (301)                   (260)
    Purchase of investments               (34)                    (12)
    Net cash inflow (outflow)
     from investing activities          3,240                  (3,929)
    Net cash inflow (outflow)
     before financing                   3,542                  (3,522)
    Financing
    Issue of ordinary share capital        25                      18
    Reduction/increase in
     short term loans                    (666)                    437
    Proceeds of debenture loans             4                       4
    Repayments of debenture loans         (31)                    (21)
    Repayments of bank loans             (556)                   (977)
    Proceeds of bank loans                  -                     616
    New unsecured bonds                   814                     900
    Costs of bond issues                    -                      (5)
    Net cash (outflow)
     inflow from financing               (410)                    972
    Net cash inflow
     (outflow) after
     financing             3            3,132                  (2,550)
                                 HANSON PLC
                      Cash Flow Statement (Continued)
                     for the year ended Sept. 30, 1993
                            (Millions of pounds)
    1. Reconciliation of trading           1993                    1992
    profit to net cash inflow
    from operating activities
      Profit from trading operations      1,035                   1,040
      Central expenses less property
       and other income                     (96)                    (37)
      Depreciation                          294                     234
      Provisions charged                    195                     126
      Profit on sales of
       tangible fixed assets                (11)                    (14)
      Increase in listed investments        (27)                      -
      (Increase) in stocks                   (2)                    (32)
      Decrease in debtors                   108                      78
      (Decrease)/increase in creditors      (18)                     83
                                          1,478                   1,478
    Outflow in respect of provisions,
    discontinued operations and
     closure costs                         (482)                   (388)
    Net cash inflow from operg. activities  996                   1,090
    2. Purchase and disposal of       1993      1992      1993     1992
    subsidiary undertakings             Purchases           Disposals
    Fixed assets                    (1,800)   (3,150)      154       14
      Stocks                          (341)     (346)       32       19
      Debtors                         (371)     (370)       27       14
      Listed investments               (14)        -         -        -
      Cash at bank and in hand        (127)      (83)        -        1
      Creditors                        403       269       (19)     (22)
      Bank overdrafts                   22       783         -        2
      Loans and finance leases       1,818       824         -        -
      Provisions for liabilities       481     1,689        (2)     (46)
                                        71      (384)      192      (18)
      Profit on disposal                 -         -        21      149
      Goodwill                      (1,270)       (7)      218        7
                                    (1,199)     (391)      431      138
      Satisfied by issue
       of share capital                528         -         -        -
      Assets exchanged
       (Gold Fields Mining)            369         -      (369)       -
      Satisfied by issue of warrants     -        65         -        -
      Accrued purchase consideration    25         -         -        -
      Cash consideration              (277)     (326)       62      138
      Cash and bank overdraft
        acquired/sold                  105      (700)        -       (3)
                                      (172)   (1,026)       62      135
                                 HANSON PLC
                      Cash Flow Statement (Continued)
                     for the year ended Sept. 30, 1993
                            (Millions of pounds)
    3. Analysis of changes in cash     Cash   Overdraft   Net   Deposits
    overdrafts and deposits
    utilised in investing activities
    Balance at Oct. 1, 1991           4,616     (671)   3,945     3,149
    Net cash inflow (outflow)        (2,437)    (113)  (2,550)    3,120
    Effect of exchange fluctuations      (9)      19       10         -
    Balance at Oct. 1, 1992           2,170     (765)   1,405     6,269
    Net cash inflow (outflow)         3,132        -    3,132    (3,580)
    Effect of exchange fluctuations      28      (16)      12         -
    Balance at Sept. 30, 1993         5,330     (781)   4,549     2,689
    Deposits per above                2,689
    Cash at bank per balance sheet    8,019
    4. Analysis of changes        Share   Loans and   Current   Current
    in financing                Capital/   Finance   Debenture    Bank
                                Premium    Leases      Loans     Loans
    Balance at Oct. 1, 1991       2,355     4,880      1,725      139
      Cash inflow (outflow)
       from financing                18       522        445       (8)
      Costs of bond issues           (5)        -          -        -
      Current loan reallocations      -    (1,115)       127      988
      Subsidiary undertakings
        acquired and sold             -       824          -        -
      Exchange movements              -       (42)       (34)      (3)
    Balance at Oct. 1, 1992       2,368     5,069      2,263    1,116
      Cash inflow (outflow)
       from financing                25       231        469   (1,135)
      Scrip Dividends                 6         -          -        -
      Current loan reallocations      -      (263)         -      263
      Subsidiary undertakings
        acquired and sold            53     1,818          -        9
      Exchange movements              -       366        384       44
    Balance at Sept. 30, 1993     2,452     7,221      3,116      297
    Only the net movement in borrowing under the revolving commercial paper programme is included in the net cash flow from financing.
                        HANSON PLC AND SUBSIDIARIES
                             Reconciliation To
                         U.S. Accounting Principles
    The following is a summary of the estimated material adjustments to profit and ordinary shareholders' equity which would be required if US Generally Accepted Accounting Principles (US GAAP) had been applied:
    Years ended Sept. 30,        1993      1992       1993      1992
    Profit available for
     appropriation (Millions of pounds)
    Profit available for
     appropriation as reported
     in the consolidated profit
     and loss account             734      1,089      1,098     1,628
    Estimated adjustments:
    Goodwill amortisation         (94)       (95)      (141)     (142)
    Foreign currency translation   (7)       (11)       (10)      (16)
    Pensions                       34         52         51        78
    Timberlands depletion
     & reforestation              (32)       (36)       (48)      (54)
    Taxation                      (22)       (96)       (33)     (144)
                                 (121)      (186)      (181)     (278)
    Estimated profit available
     for appropriation
     (net income) as adjusted
     to accord with US GAAP       613        903        917     1,350
    Arising from:
    Continuing operations         561        701        839     1,048
    Discontinued operations
     -- income/(loss) from
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1993
Words:4246
Previous Article:JAMESWAY CORPORATION REPORTS SALES FOR DECEMBER 1993
Next Article:GOTTSCHALKS ANNOUNCES DECEMBER SALES RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters