Tongaat-hulett Group On Track To Meet Projected Re
Press release
December 6, 2001
The Tongaat-Hulett Group was on track to achieve its projected results,
despite the slowing world economy, Mr. Cedric Savage, Group Executive
Chairman told analysts at a luncheon in Johannesburg today (Thursday
December 6, 2001).
He said management had adapted and performed well under the circumstances
and increased exports along with a weakening of the Rand had helped the
company's financial performance.
"We are expecting earnings to be similar to those of last year with an
appreciable increase in cash flow," he said. This was an improvement on the
August interim results forecast, where headline earnings were expected to be
slightly lower than the previous year.
The sugar division was expecting the year's crop to be down some 20 percent
because of poor rainfall. However the adverse effects of this would be
offset by improved revenue realizations boosted by export sales, which in
Rand per ton terms is likely to be 36 percent up on last year. Improved
performance from Swaziland and Mozambique, ongoing productivity gains and
the sugar division's low production cost base should result in earnings
growth.
The Starch and Glucose division was on the upturn, and was more than
justifying the R800 million investment made at Kliprivier three years ago.
Domestic sales had increased by two percent and exports had almost doubled
to 80 000 tons. The division was concentrating on higher value-added
products for export and was expected to produce strong cash flows and
earnings growth, said Mr. Savage.
The Hulett Aluminium division was projecting strong growth in exports and a
positive cash flow. The focus of the division is on penetrating the higher
value-added niche markets, and it continued to meet production, cost and
quality benchmarks. The division was indeed honoured last week to be
presented with the President's Award for Export Achievement in 2001, he
said.
Ends
Issued by: Simeka TWS Communications, Durban
Contact: Lesley van Duffelen
(031) 203 9800/ 083 787 4533
On behalf of: Tongaat-Hulett Group
Contact: Cedric Savage, Executive Chairman
Or JB Magwaza, Executive Director
(032) 439 4000
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