Trading Statement

RNS Number:2410T
Aggregate Industries PLC
15 December 2003




Embargoed until 7.00am - 15 December 2003



                            AGGREGATE INDUSTRIES PLC

                                 Trading Update


Aggregate Industries plc, the international aggregate and building materials
group, today issued an update on trading for the year ending 31 December 2003.


Summary


Thanks to the general resilience of the US business, the exceptionally strong
performance throughout the year of the UK operations and the continuing downward
pressure being exerted on the Group's cost base, we expect Aggregate Industries'
financial performance to improve in line with market expectations for the year.



The year as a whole has been characterised by a very strong performance in the
UK, contrasted with more difficult trading conditions in the US, where unusually
adverse weather delayed the start of the main trading season by several weeks.



As expected, US volumes rebounded in the third quarter and much of the
weather-delayed first-half backlog was recovered, although the Colorado region
continues to experience subdued market conditions and early December snowfall on
the US East Coast will reduce dollar results.



The translated value of US operating profits will inevitably be affected by the
significant decline in the value of the dollar throughout the year.  However,
this will be partially offset by the positive effect on translation of that part
of the Group's dollar-denominated interest charge.



UK trading during the second half of 2003 has remained very strong and volume
improvements have been maintained in the eleven months to November, with record
results achieved.  The business continues to perform strongly in December.


US Trading


Third-quarter volumes recovered as the weather-affected first-half backlog was
reduced, although the east coast operations continued to experience a wetter
than average second six months.



Activity remained firm in Massachusetts and the Wakefield operations have
benefited from the strong housing market.  The Mid Atlantic region, also aided
by a strong housing market and a good level of construction activity in the
Washington area, will report improved trading results.



Michigan has remained relatively stable and we have seen a recovery in the
Indiana ready mix concrete operations.



Both operations in the North Central Region (Minnesota/North Dakota) have seen
profits rise, benefiting from a strong housing market coupled with work on a
number of large infrastructure projects.  These include the mass-transit system
link from the airport to the Mall of America and central Minneapolis; interstate
reconstruction; and the start of work on the phase II development at the Mall of
America.



Colorado has continued to experience very weak market conditions, particularly
in housing and commercial development, which have reduced demand for ready mixed
concrete and affected prices.  The region continues to benefit from significant
volume delivered to the T-Rex project, but this has not compensated for the
shortfall and profit is expected to be substantially lower.  However, we believe
the market has now stabilised at this reduced level.



The operations have continued to focus on reducing costs, with good progress
being made throughout the US during the year.  The management reorganisation and
relocation of the Bethesda office will also deliver benefits from 2004.


UK Trading


The improved trading levels achieved in the first half have been maintained in
the five months to the end of November.


Aggregate and asphalt operations, in particular, have benefited from the
northern bias of the business, with a high level of activity in Scotland and the
North West.  Aggregate volumes in the first half were below the prior year and
this trend has continued into the second half, as lower-grade product sales
continued to be impacted by the aggregate levy.  However, we have seen strong
growth in our supply of secondary and recycled materials.



In contrast, our asphalt volumes rose, reflecting increased highway maintenance
and infrastructure construction and the benefit of the enlarged Bardon
Contracting operation.  Ready mixed concrete volumes also increased, reflecting
the benefit of acquisitions, plant improvements and an excellent performance
from London Concrete.



Bradstone, Charcon and Masterblock have all traded very strongly, maintaining
the positive trend established in the first six months.  Bradstone benefited in
particular from the dry autumn, which prolonged the trading season, and
Masterblock's performance reflects the continuing strength of the housing
market.


Acquisitions


On 18th November we announced the acquisition of a major aggregate, asphalt and
contracting business located in Las Vegas, Nevada.  The purchase of Southern
Nevada Paving Company Inc. and subsidiaries for $64.1m creates a new regional
business in an area of rapid economic growth and represents an important
addition to the Group's US operations.


Finance


The Group continues to focus on tight control of costs, improving cash flow and
strengthening the balance sheet.  This has enabled the Group comfortably to
finance this year's bolt-on acquisitions and we anticipate that year-end gearing
will be similar to the 54% reported at December 2002.



We anticipate that the estimated tax rate for 2003 will be 32% (2002 33%) as a
result of the increase in the proportion of profit subject to UK taxation.


Outlook


We are pleased with the progress made in 2003.  We have a first-class management
team, cashflow remains strong, costs are being tightly controlled and our
strategy of securing bolt-on acquisitions has again added appreciably to the
group's success.  Against this background, we continue to look to the future
with confidence.

                                    - ends -



Aggregate Industries will announce its preliminary results for the year ended 31
December 2003 on Monday ,1 March 2004.



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]








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