TRENCOR/ MOBILE - TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
TRENCOR LIMITED MOBILE INDUSTRIES LIMITED
(Incorporated in the Republic of (Incorporated in the Republic of South
South Africa) Africa)
(Registration no 1955/002869/06) (Registration no 1968/014997/06)
Share Code: ISIN: Share Code: ISIN:
TRE ZAE000007506 MOB ZAE000004602
TED2 ZAE000007282 MBN ZAE000012274
(`Trencor`) MOBD ZAE000004610
(`Mobile`)
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
Holders of securities in Trencor and Mobile are advised that it is expected that
Trencor will report positive headline earnings of approximately 10 cents per
share for the six months ended 30 June 2004 compared to the undiluted headline
losses per share of 88,4 cents reported for the corresponding period last year
and 108,2 cents reported for the year ended 31 December 2003. This change
arises mainly for the reasons set out below.
In US dollar terms, trading income from Trencor`s continuing operations, after
net financing costs, is expected to show an improvement over the corresponding
period last year. Due to the negative effect of the much stronger rand on the
translation of income from Trencor`s mainly US dollar-based operations, trading
income after charging net financing costs for the six months is expected to be
lower than the corresponding period last year when expressed in rand.
At 30 June 2004 the spot US$/R exchange rate had strengthened to US$1 = R6,25
from R7,38 at 30 June 2003 and R6,62 at 31 December 2003. This resulted in a
net unrealised exchange loss of approximately R75 million for the six months
ended 30 June 2004 on the translation of the long-term receivables and the
related provision, and also Trencor`s dollar loans, from US dollars into rand
(R272 million loss for the corresponding period in 2003).
This forecast financial information has not been reviewed or reported on by the
auditors and holders of securities in Trencor and Mobile are advised to exercise
caution when dealing in their securities until the unaudited interim results in
respect of the six months ended 30 June 2004 are published, which is expected to
be towards the end of August 2004.
ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
13 AUGUST 2004
www.trencor.net
www.mobile-industries.net
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
Date: 13/08/2004 03:28:00 PM Produced by the JSE SENS Department
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