The Holcim Group's 2002 financial statements will contain a CHF 120 million (US$87.7 million) provision for the outcome of the German Federal Cartel Office's legal proceedings against around 30 German cement manufacturers. The action is progressing but has not yet been concluded.

The provision will bring about a heavier-than-expected fall in Holcim's net income, now estimated to be around 40 percent lower than the 2001 figured of CHF 812 million (US$594 million), and also reflects the negative exchange rate movements as well as a generally difficult economic climate.

At the operational level, however, results are expected to come close to the previous year's CHF 1.95 billion (US$ 1.42 billion).

In July 2002, the German Federal Cartell Office announced it was conducting investigations into the German cement industry regarding market violations in the 1990s. Inquiries also covered Holcim's two German companies, Alsen AG in Hamburg and Weil am Rhein-based Holcim (Baden-Wurttemberg) GmbH. At present, it appears likely that a fine will be imposed on Alsen shortly.