REUNERT LIMITED -
REUNERT LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1913/004355/06)
Share Code: RLO
ISIN: ZAE000005914
("Reunert")
REUNERT LIMITED - TRADING STATEMENT
Reunert today issued a trading update advising shareholders that headline
earnings per share for the financial year ending 30 September 2003 will be
significantly lower than that of the previous year.
At the time of the announcement of the interim results on 8 May 2003, Reunert
stated that 40% associate company, Siemens Telecommunications (Sietel), had
performed poorly in the first half. Although it was expected to perform better
in the second half, full year profits were anticipated to be significantly lower
than those previously achieved.
The anticipated improvement in Sietel has not materialised. Cost overruns on a
major contract as well as the significantly lower revenue stream due to the
continuing strong rand will result in Sietel incurring substantial losses in the
year ending September 2003. Steps are being taken to return Sietel to
profitability in 2004.
The other businesses in the Reunert group continue to perform well.
Telecommunications cable manufacturer, ATC, has turned profitable following cost
cutting measures and an improving order book. The outlook for ATC in the coming
year is positive.
The group is still experiencing strong cash flows from its wholly owned
businesses and cash on hand at the end of the financial year will show a further
marked improvement. It is anticipated that the dividend to be declared in
November will be at least equal to the 2002 final dividend.
The current loss making situation at Sietel is not expected to continue and
Reunert is looking to renewed growth in headline earnings per share in 2004
compared to that of September 2002.
The company will release its results for the financial year on 27 November 2003.
18 July 2003
Sponsor
RAND MERCHANT BANK
A division of FirstRand Bank Limited
CORPORATE FINANCE
Date: 18/07/2003 04:32:45 PM Supplied by www.sharenet.co.za
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