CHAIRMAN`S STATEMENT AT THE SAPPI LIMITED ANNUAL G
SAPPI LIMITED
(REGISTRATION NUMBER 1936/008963/06)
SHARE CODE: SAVVI
ISIN : ZAE000006284
TRADING CONDITIONS IN OUR MAJOR COATED FINE PAPER MARKETS REMAIN DIFFICULT.
HOWEVER, DEMAND FOR OUR PRODUCTS HAS INCREASED COMPARED TO THE LOW LEVELS
PREVAILING AFTER THE EVENTS OF 11 SEPTEMBER 2001 BECAUSE OF IMPROVEMENTS IN
ADVERTISING IN PRINT MEDIA. CURRENT GLOBAL SUPPLY LEVELS FOR COATED FINE PAPER
STILL EXCEED DEMAND AND WE CONTINUE TO CURTAIL OUTPUT TO MATCH OUR CUSTOMERS`
NEEDS.
In spite of the slow economy and downward pressure on pricing, our European
business is producing reasonable returns, partly as a result of the stronger
Euro (which helps to contain input costs) and partly as a result of its
operating efficiency. We expect some price recovery, announced recently in
Southern Europe, to become effective during March.
In North America, the announced price increases on coated fine paper continue to
be implemented. The effect on average prices will however be partly offset by a
shift in sales mix towards lower-priced products but margins should begin to
improve in the second half year.
The strength of the Rand is putting pressure on the margins of our South African
business as most of its exports are priced in Dollars. This will be partly
offset by Dollar pulp price increases. However, the effect of price increases
for dissolving pulp will only be seen when they are realised next quarter.
For the current quarter we expect earnings per share to be similar to the first
quarter and we still expect earnings for the full year to show improvement over
last year.
We recently announced that Jonathan Leslie will be joining the company in April
this year as CEO and we look forward to welcoming him to the Group.
For further information please contact:
Robert Hope
Director Strategic Development
Sappi Limited
Tel +27 (0)11 407 8492
Fax +27 (0)11 403 1493
Robert.Hope@za.sappi.com
Date: 03/03/2003 01:05:35 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
