Mining and aggregates giant Anglo American remains committed to selling the UK arm of Tarmac, according to chief executive Cynthia Carroll.
The group announced the planned divestment last October, and , plus other 'non-core' operations.
鈥淭he preparatory work to separate the remaining businesses for divestment from the Group is under way and the divestments will be carried out in a manner and to a timetable that maximises value for Anglo American's shareholders,鈥� said Carroll, speaking at Anglo American's interim results for the six months to 30 June 2010.
Tarmac's revenue for the period was 拢802m, down from 拢876m in the first half of 2009, while operating profit was up marginally at 拢18.5m (H1 2009: 拢17.9m).
Carroll described it as 鈥渁 resilient performance in a difficult market where European, and in particular UK macroeconomic conditions, continue to be challenging鈥�.
She added: 鈥淭he UK Quarry Materials business experienced robust demand in the first half, with the effect of the adverse weather conditions in the first two months of the year partially mitigated in later months. Volumes increased, with overall demand showing a 5% increase. Pricing pressures remain a key issue for the business, though their effect has been mitigated by continued success in cost saving initiatives.
鈥淭he UK Building Products business saw a significant turnaround, reflecting the results of a major restructuring programme in 2009. The impact of weak demand was partially mitigated by cost reduction initiatives.鈥�
Carroll summarised: 鈥淭he 2010 outlook in the UK remains weak, but further clarity is expected when government spending plans are set out in the coming months.鈥�
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