| Thu 28 Aug 2008, 17:15 | | DLV - Dorbyl Limited - Cautionary announcement |
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DLV
DLV
DLV - Dorbyl Limited - Cautionary announcement
DORBYL LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1911/001510/06)
(Share Code: DLV ISIN: ZAE000002184)
("Dorbyl", "the Group" or "the Company")
Cautionary announcement
Shareholders are advised that the Company has embarked on a process to re-
evaluate its asset portfolio with the objective of optimising shareholder value.
This process includes the reassessing of the Company`s overall strategy with
potential restructuring and right-sizing of businesses, the introduction of
international partners where appropriate and the disposal of non-core assets.
The Guestro Forging and Machinery division, which has been generating losses,
had to curtail its workforce recently and further rationalisation may be
required in the near future. The continuation or downscaling of certain units
within the division will depend on securing viable price increases from local
and overseas customers. As stated in the 2008 Annual Report, the deterioration
of the Group`s results were predominantly due to the negative effect of global
price pressures particularly from the Original Equipment Manufacturers in the
automotive industry. It has been recognised that the Group is overly reliant on
the automotive industry and the inherent exposures and risks in that industry as
to global competition, pricing, input costs and capital expenditure necessary to
keep up with technology. In this regard, whilst consideration is being given to
diversifying into other metal/steel related sectors, the Group will continue to
invest in viable projects in the automotive sector.
With regards to the properties owned by the Group, those properties or portions
thereof which are surplus to the requirements of the Group, will either be
rented out at market related rentals or disposed of at market related prices.
These possibilities are being actively explored and the Company has received
offers for various properties, which are currently being evaluated.
Particulars of specific transactions will be released as and when appropriate,
in compliance with the rules of the JSE Limited. In the interim, shareholders
are advised to exercise caution in the dealing of their Dorbyl shares.
Johannesburg
28 August 2008
Sponsor
PSG Capital (Pty) Limited
Date: 28/08/2008 17:15:01 Produced by the JSE SENS Department.
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