| Wed 22 Jul 2009, 15:30 | | TON - Tongaat Hulett - Trading Statement For The Half-Year To 30 June 2009 |
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TON
THGL
TON - Tongaat Hulett - Trading Statement For The Half-Year To 30 June 2009
And Withdrawal Of Cautionary Announcement
Tongaat Hulett Limited
(Registration number 1892/000610/06)
Share code: TON
ISIN ZAE000096541
TRADING STATEMENT FOR THE HALF-YEAR TO 30 JUNE 2009 AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
Tongaat Hulett issues this Trading Statement on the expected results for the
half-year to 30 June 2009, based on the consolidation of the Zimbabwe
operations as explained in the cautionary announcement of 18 June 2009.
Tongaat Hulett`s profit from operations for the six months to 30 June 2009
is expected to increase to R864 million (2008: R443 million). This includes
profit from the starch operations of R112 million (2008: R103 million) and
profit from land and property development of R64 million (2008: R115
million). The profit from the sugar operations totals R644 million, of which
Zimbabwe constitutes R305 million (compared to the dividend received of R35
million in 2008) and the various other sugar operations constitute R339
million (2008: R218 million). A net gain of R44 million is reflected in
centrally accounted items (2008: R28 million cost), which includes a gain of
R82 million on the recognition of Tongaat Hulett`s unconditional
entitlement, in 2009, to a pension fund surplus in respect of a 2007 surplus
apportionment.
The consolidation of the Zimbabwe operations follows the macroeconomic
changes that essentially occurred when Zimbabwe moved to a US dollar and
Rand based economy and, in so doing, restored key relevant fundamentals to
the economy. This removed many of the distortions that existed in the
Zimbabwean economy, which included unrealistic local market sugar price
realisations, not receiving the full benefit of export proceeds, exchange
rate uncertainty and foreign currency restrictions, shortage of inputs and
the effects of extreme hyperinflation. Previously, in terms of the relevant
international accounting standard, these operations were not consolidated
and were accounted for on a dividend received basis. As a result of the
changes at the beginning of 2009, Tongaat Hulett meets the requirement for
consolidating its Zimbabwean operations in terms of the relevant
international financial reporting standards (IFRS). The accounting treatment
in terms of IFRS on the commencement of consolidation of the Zimbabwe
operations gives rise to a balance sheet take-on gain of R1,969 billion,
which is recognised in the income statement. This gain is excluded from the
profit from operations detailed above, excluded from headline earnings and
included in total net profit.
Headline earnings for the first half of 2009 are expected to be R440 million
(2008: R252 million). Headline earnings per share are expected to be 426
cents per share (2008: 245 cents per share). Total net profit for the six
months is expected to be R2,419 billion with net profit per share being 2343
cents per share (2008: total net profit was R266 million and net profit per
share was 258 cents per share).
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.
The cautionary announcement of 18 June 2009 is hereby withdrawn.
The interim results for the half-year ended 30 June 2009 are scheduled for
release on Monday, 3 August 2009.
Tongaat
22 July 2009
Sponsor
INVESTEC BANK LIMITED
Date: 22/07/2009 15:30:04 Produced by the JSE SENS Department.
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