Hanson, which in March completed the last major step of its transformation with the sale of its crane business Grove Worldwide, said first-half trading profit was ``well up,'' driven by a strong performance at its US subsidiary cornerstone.

``The overall outlook for the remainder of the year is encouraging and is in line with expectations. Another good year is anticipated,'' chief executive Andrew Dougal said in a trading statement ahead of half-year results on September 10.

In March, Hanson reported its first set of annual results since the demerger, posting a pretax profit before exceptional items of 224.7 million pounds ($368 million).

Investors in London welcomed the statement and Hanson shares rose by more than two per cent to an intraday high of 370 pence, outstrippingthe overall market's lacklustre 0.2 per cent gain. The stock subsequently slipped back to 365-3/4 pence, up one per cent on the day.

Chairman Christopher Collins said Hanson's financial position was strong and the group ended the first half with net cash of around 150 million pounds. Cash flow is traditionally stronger in the second half and the net cash position was expected to grow, the company said.

Collins predicted further growth for Hanson, which in its heyday as a conglomerate once included Imperial Tobacco Group Plc, Millennium Chemicals Inc and the Energy Group Plc.

Hanson, in its trading review, said its US operations had started well and said results to date had been encouraging. Cornerstone was expected to benefit from favourable conditions in the US construction industry while investment in margin control systems would reap benefits, the company said.

Hanson said it welcomed recent US legislation setting out transport infrastructure spending and said the projects, which start next year,would underpin demand for several years.

In US Aggregrates, like-for-like volumes were flat due to bad weather in the southeastern and western regions. But it said underlying aggregate demand was strong with prices ahead four per cent. Concrete pipe results were well ahead, helped by a full six month contribution from subsidiary CP&P. In Britain, trading conditions were ``reasonable'' but the strong start to 1998 had eased because of recent bad weather.

The company said both ARC aggregates and its Hanson Brick subsidiaries had managed to push through price rises of between four and five per cent in the first half.

But volumes at ARC were flat despite an increase in ready-mixed concrete because declining investment in roadbuilding cut sales of crushed rock and coated stone. Overall, trading conditions for ARC were expected to remain ``reasonably good,'' Hanson said.

At Desimpel, Hanson's brick manufacturer in Belgium, trading conditions remained difficult and overcapacity remained a ``significantconcern,'' the company said. Hanson said prices in the Belgian clay block market, which accounts for around 40 per cent of Desimpel's sales, remained under pressure, while the strong pound and temporary closure costs to cut capacity would hit year-on-year comparisons.