The Tongaat-Hulett Group Limited - Trading Stateme
The Tongaat-Hulett Group Limited - Trading Statement And Cautionary Announcement
THE TONGAAT-HULETT GROUP LIMITED
Registration number 1892/000610/06
Share Code : TNT
Issuer Code : THGL
ISIN Code : ZAE000007449
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
This trading statement and cautionary announcement is issued in accordance with
the revised JSE Securities Exchange South Africa listings requirements which
became effective on 1 September 2003.
Tongaat-Hulett"s annual results for the year ending 31 December 2003 are
expected to be released on 23 February 2004. Conditions for the year to date are
such that the Group expects both earnings per share and headline earnings per
share for the year ending 31 December 2003 to be substantially below those of
the year ended 31 December 2002. At the current exchange rate and maize price,
Tongaat-Hulett expects to report a headline loss for the year to 31 December
2003.
Tongaat-Hulett has previously advised shareholders of factors that impact on its
results and it has distinguished between underlying operating profit and
valuation items in the income statement. The interim results to 30 June 2003
included valuation adjustments that exceeded underlying operating profit and a
headline loss of R190 million was reported. The exchange rate has moved well
below the level of R7,50 per US dollar, which prevailed at 30 June 2003. The
underlying operating profits earned by the Group for the year continue to be
countered by substantial negative valuation adjustments, which arose
predominantly in the first half.
At 30 June 2003, negative valuation adjustments of R375 million were reported
for the first half of the year. At current exchange rates, there are further
negative valuation adjustments mainly on offshore cash holdings and export
debtors. At the current maize price, the charge in the income statement to 30
June 2003 in respect of the valuation of maize procurement contracts has not
changed significantly. The maize futures position is being shortened in the
second half of 2003 as the procurement contracts are managed for physical
delivery during 2004.
The above information has not been reviewed or reported on by the Group"s
auditors. Shareholders are, therefore, advised to exercise caution when dealing
in the Group"s securities until the publication of the Group"s results for the
year ended 31 December 2003.
Tongaat
26 November 2003
Sponsor
HSBC
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