Trading Statement

RNS Number:3305M
Aggregate Industries PLC
16 June 2003


Embargoed until 7.00am - 16 June 2003



                            AGGREGATE INDUSTRIES PLC
                                 Trading Update


Aggregate Industries plc, the international aggregates and building materials
group, today issues an update on trading for the half-year ending 30 June 2003.

Summary

Strong trading and improved results in the UK have been offset by a slow
weather-delayed start to the US operating season.  Good management of cash flow
and continuing low interest rates combined to further reduce the cost of
borrowing but, as indicated in our AGM statement, first-half US profit is
expected to represent a smaller proportion of full-year profit than last year
and consequently our overall results for the first six months are expected to
show a modest year-on-year reduction.  However, our expectations for the year as
a whole remain unchanged.

US

As we reported in March, early-season activity levels in all our US regions were
sharply curtailed by a harsh, extended winter.  The East Coast has also
continued to experience a very wet spring.  The effect of these delays will be
to reduce first-half profits in the US.

Nevertheless, the outlook for underlying residential and infrastructure demand
in all regions remains healthy, although commercial construction activity shows
no immediate signs of improvement.

We expect to see continuing regional variations, with some improvement in
activity levels in the Mid Atlantic and Minnesota regions contrasting with lower
demand in Colorado, where the residential market remains subdued.

With the main construction season now underway and management focused on driving
down costs and recovering delayed work programmes, we remain confident that the
full-year outturn in the US will be in line with expectations.

UK

Firm demand, coupled with benign weather conditions, improved cost control and a
March price increase, underpinned trading in the UK in the first five months of
2003.

Bradstone, Charcon and Masterblock have all benefited from buoyant trading this
year, with Bradstone experiencing a high level of demand stimulated by
particularly favourable weather at Easter.  Overall we anticipate that results
from these activities will be ahead of those achieved in 2002.

Asphalt volume increased and ready-mixed concrete showed a like-for-like
improvement, including the benefit of acquisitions completed in 2002.  Total
aggregate sales were lower, reflecting the comparison with a buoyant first
quarter of last year when customers brought forward purchases ahead of the
introduction of the aggregates levy in April 2002.

The outlook is positive in all regions of the UK, with a good flow of
publicly-funded projects and a stable residential market.  We therefore
anticipate that the expected improvement in the first half will be maintained
over the year as a whole.

We have recently completed the purchase of Brown and Potter Ltd, a privately
owned sand and gravel and ready-mixed concrete operation located near Ripon,
North Yorkshire.  This acquisition is key to the development of the aggregate
and ready-mixed concrete operation in that region.

Conclusion

The Group continues to focus on minimising costs, improving cashflow and
strengthening the balance sheet.  Although recent currency trends, in particular
the weaker US dollar, inevitably make the achievement of expectations more
challenging, we anticipate making further progress during the year.  We will
also seek opportunities to add businesses which contribute further to Group
earnings.

                                    - ends -

Further information about Aggregate Industries can be found at www.aggregate.com

Contacts:

Peter Tom, Group Chief Executive
Chris Bailey, Group Finance Director
Aggregate Industries plc                               Tel:   [phone]

Steve Jacobs
Financial Dynamics                                     Tel:   [phone]


                      This information is provided by RNS
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