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MBN TRE MOB TED2 MOBD
MOB TRE
Trencor/ Mobile - Trading Statement
TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration no 1955/002869/06)
Share Code: ISIN:
TRE ZAE000007506
TED2 ZAE000007282
("Trencor")
MOBILE INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration no 1968/014997/06)
Share Code: ISIN:
MOB ZAE000004602
MBN ZAE000012274
MOBD ZAE000004610
("Mobile")
TRADING STATEMENT
Holders of securities in Trencor and Mobile are advised that Trencor expects to
report undiluted headline earnings of between 250 and 265 cents per share for
the year ended 31 December 2005 (2004: 78,3 cents per share, after adjustment as
explained below). This improvement is mainly the net result of the factors set
out below. Expressed in US currency, undiluted headline earnings are expected
to increase to between 30 and 35 US cents per share in 2005 (2004: 22,0 US
cents). Undiluted earnings per share are expected to increase to between 265
and 280 cents per share (2004: 56 cents per share, after adjustment as explained
below).
Trading income after net interest expense continues to show pleasing
improvement.
The spot US$/R exchange rate weakened from R5,61 at 31 December 2004 to US$1 =
R6,31 at 31 December 2005. This resulted in a net unrealised exchange gain of
approximately R187 million (86 cents per share) for the year on the translation
of the long-term receivables and the related provision from US dollars into rand
(2004: R230 million loss - 105 cents per share).
A net release from the debtor provisions that is smaller than that in 2004.
Holders of securities are further advised that Textainer, 73% owned by Trencor,
has determined that under the stricter application of International Accounting
Standard 39, it may not use hedge accounting for certain interest rate swaps
taken out to hedge economic risk, notwithstanding that the swaps had been 98%
effective. It is therefore required to account on the basis that the net result
of the marked-to-market valuation of these instruments is flowed through the
income statement. In the past, these adjustments have been charged or credited
direct to equity in accordance with the principles of hedge accounting. The net
result of this non-cash change is an increase in Textainer"s 2004 earnings of
US$5,8 million. The effect on Trencor is to increase undiluted headline
earnings per share in 2004 by 17,6 cents from 60,7 cents to 78,3 cents.
Comparative figures for 2004 have been amended accordingly. No changes are
required to Trencor"s 2004 balance sheet. The unrealised gain reported in
Textainer on marking these instruments to market at 31 December 2005 is
approximately US$4,9 million.
This forecast financial information has not been reviewed or reported on by the
companies" auditors. The Reviewed Results in respect of the year ended 31
December 2005 are expected to be published towards the end of February 2006.
ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
8 February 2006
www.trencor.net
www.mobile-industries.net
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 08/02/2006 11:52:03 AM Produced by the JSE SENS Department
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