| Wed 23 Jul 2008, 15:48 | | TON - Tongaat Hulett - Trading Statement |
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TON
THGL
TON - Tongaat Hulett - Trading Statement
Tongaat Hulett Limited
(formerly The Tongaat-Hulett Group Limited)
(Registration number 1892/000610/06)
Share code: TON
ISIN ZAE000096541
TRADING STATEMENT FOR THE HALF-YEAR TO 30 June 2008
Tongaat Hulett`s profit from operations for the six months to 30 June 2008 is
expected to increase by 44% to R443 million (2007: R308 million). It comprises
profit from the sugar operations of R253 million (2007: R167 million), land and
property development of R115 million (2007: R127 million), starch operations of
R103 million (2007: R37 million) and centrally accounted costs of R28 million
(2007: R23 million).
Increased profit contributions came from the sugar operations in Mozambique,
Swaziland and Zimbabwe. The current expansion in Mozambique is well underway. A
dividend from Zimbabwe of R35 million, which was a declaration from prior year
profits, was received and brought to account in profit from sugar operations.
The challenging conditions in Zimbabwe continue. The South African sugar
operations were under increased pressure and continued to experience the effects
of the small 2007 crop and lower export realisations. The operating profit from
land development was achieved with limited hectares being sold. The residential
property market is experiencing significantly reduced demand. The current focus
is on increasing the limited stock, with final unconditional development
approvals, available out of the 14 000 hectares of agricultural land with
development potential, to meet the continued demand in specific industrial,
commercial and tourism sectors. Profit from the starch operations increased as
margins recovered in the last three months.
Headline earnings for the first half of 2008 is expected to be R252 million
(2007: headline loss of R155 million which included the once-off corporate
structuring and BEE equity transaction costs and excluded the Hulamin fair
valuation gain prior to listing and unbundling). Headline earnings per share is
expected to be 245 cents per share (2007: loss of 145 cents per share). Total
net profit for the six months is expected to be R278 million with net profit per
share being 258 cents per share (2007: total net profit including the Hulamin
fair valuation prior to unbundling was R3,209 billion and net profit per share
was 2994 cents per share).
The interim results for the half-year ended 30 June 2008 are scheduled for
release on Monday, 4 August 2008.
This trading statement is issued in compliance with the JSE Listings
Requirements. The above information has not been reviewed and reported on by the
auditors.
Tongaat
24 July 2008
Sponsor
INVESTEC BANK LIMITED
Date: 23/07/2008 15:48:01 Produced by the JSE SENS Department.
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