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NAMPAK LIMITED - PROFIT WARNING

Release Date: 25/01/2001 12:35
Code(s): NPKP NPP1 NPK
Wrap Text
NAMPAK LIMITED

STATEMENT MADE BY THE CHAIRMAN AT THE ANNUAL GENERAL MEETING HELD ON 25 JANUARY 2001
"AN ISSUE WHICH REQUIRES COMMENT IN ORDER TO KEEP SHAREHOLDERS INFORMED HAS ARISEN SINCE THE PUBLICATION OF THE ANNUAL REPORT DATED 1 DECEMBER 2000. TRADING CONDITIONS FOR THE FIRST QUARTER OF THE NEW FINANCIAL YEAR WERE EXTREMELY DISAPPOINTING AND VOLUMES WERE APPROXIMATELY 6% LOWER THAN THE CORRESPONDING PERIOD LAST YEAR. TRADING IN JANUARY INDICATES SOME IMPROVEMENT IN VOLUMES, BUT THESE LEVELS AND THE LATEST FORECAST FOR FEBRUARY AND MARCH ARE NOT EXPECTED TO COMPENSATE FOR THE POOR FIRST QUARTER.
THIS DEPRESSED TRADING ENVIRONMENT HAS NECESSITATED A FURTHER REVIEW OF OUR COST REDUCTION PROGRAMME. THE MAJORITY OF THE COSTS ASSOCIATED WITH THIS PROGRAMME WILL BE BORNE IN THE SECOND HALF OF THE YEAR. A PROJECTED IMPROVEMENT IN TRADING CONDITIONS FOR THE SECOND HALF WILL NOT BE SUFFICIENT TO COVER BOTH THE RESTRUCTURING COSTS AND THE SHORTFALL RESULTING FROM THE POOR FIRST HALF YEAR.
IN THE CHAIRMAN'S STATEMENT CONTAINED IN THE ANNUAL REPORT IT WAS NOTED THAT "LOW HEADLINE EARNINGS GROWTH" WAS EXPECTED IN THE CURRENT YEAR. IN THE LIGHT OF TRADING CONDITIONS DESCRIBED ABOVE, A DECLINE IN HEADLINE EARNINGS PER SHARE FOR THE FULL YEAR, AFTER ABSORBING RE-STRUCTURING COSTS, IS NOW EXPECTED. HOWEVER, A RESUMPTION OF GROWTH IN THE FINANCIAL YEAR COMMENCING 1 OCTOBER 2001 IS EXPECTED." UBS WARBURG SOUTH AFRICA (PTY) LIMITED SPONSORING BROKER

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