Cement group Aggregate Industries has unveiled its eighth successive year of record profits, although weaker demand in the UK offset positive conditions in the US.
The group, which has agreed to a #1.8 billion takeover by Swiss concrete group Holcim, said pretax profits in the year to December 31 came in at #147.6 million against #140.1 million previously.
It said significant raw material cost pressures, particularly on bitumen and energy costs, marked 2004 in the UK and the business had mixed fortunes in recovering the rises.
Operating profits at the business lifted just 1.3 per cent to #99.1 million.
In the US, the performance was better, with operating profits lifting to #71.5 million from #59.5 million last year.
Aggregate, which has six operations in the Midlands, said market conditions were generally favourable in the US during the year.
Aggregate said the overall UK market for crushed rock, sand and gravel was generally flat year on year.
While UK asphalt sales volumes declined slightly, reflecting the timing of completion of major contracts in 2003, demand for ready-mixed concrete showed some improvement on the back of resilient markets in the commercial and industrial sector.
In January Aggregate said the deal with Holcim would give the latter an entry into the UK market and would boost its presence in the US.
Aggregate chief executive Peter Tom together with Bill Bolsover, John Bowater and James Retallack, will earn substantial bonuses in a deal to keep them in post for at least two years after the merger.
The group yesterday said the formal offer to acquire the company was making good progress.
Mr Tom said Holcim's offer reflected the quality of Aggregate's staff, assets and market positions.
"I am sure that on the successful completion of the deal, the Aggregate Industries business will continue to go from strength to strength," he said.
