Yorkcor cap its 2003 results with a R37.4 million arbitration award

Yorkcor cap its 2003 results with a R37.4 million arbitration award             
The York Timber Organisation Limited                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 1916/004890/06)                                            
Share code YRK   ISIN ZAE000008108                                              
("Yorkcor" or "the company")                                                    
Yorkcor has won its long-running dispute with the Department Water Affairs and  
Forestry (DWAF) over the cancellation of evergreen sawlog supply contracts at   
three plantations near Bushbuckridge in Mpumalanga.                             
Yorkcor has been awarded R37,4 million after the matter went to arbitration.    
Though DWAF has until 30 June 2004 to pay, the R37.4 million is included in     
Yorkcor"s results for the year ended 31 December 2003.                          
The R37.4 million award boosts Yorkcor"s net asset value by 50% to 761c a share 
(2002:505,9c), and is reflected as a current asset in the group"s balance sheet 
for 2003.                                                                       
The award is net of income and capital gains tax, and DWAF has been ordered to  
pay costs related to the arbitration.                                           
Tucker says business was good for sawmillers in 2003, "better even than the     
record figures for the previous year." National softwood lumber sales increased 
by 27,7% to 2.3 million cubic metres from 1.8 million cubic metres the previous 
year, while average selling prices improved by as much as 11.6%.                
Despite the strong rand, South African pine lumber continues to sell at better  
prices than its US rival product, Southern Yellow Pine. The resilience of the   
rand did not materially affect the group"s results.                             
Revenue increased by nearly 24% to R117 million from R94 million the previous   
year. Profit for the year, taking into account the award, amounted to R33.5     
million, compared with the R3.3 million reported in 2002. Earnings per share for
the year amounted to 303.2c. Headline earnings were 9.9c per share compared to  
23.8c per share last year.                                                      
Gearing increased to 7.8% mainly due to the financing of plant and machinery and
the cost of upgrading two new mills purchased at the end of the previous year.  
Tucker says problems were experienced at the York Lumber mill near Bushbuckridge
relating to the termination of the government"s operations scheduled for 31     
December 2006. Operations at the Roburnia Forest Products were impaired by      
faulty pre-acquisition installations. "The remaining sawmills in the group      
outperformed industry averages by a long chalk," says Tucker.                   
Tucker indicated that the group"s strategic plan places a high priority on      
securing long-term timber resources.                                            
Tucker says that on 1 June 2004 he will relinquish his role as executive        
chairman of Yorkcor after 40 years, after which he will assume the position of  
chief executive officer. The new group non- executive chairman is Dr Tienie van 
Vuuren, a veteran of the South African lumber and forestry industry.            
Ends                                                                            
ISSUED FOR   : YORKCOR                                                          
CONTACT   :    Solly Tucker  Chairman : 012 804 9730 Cell: 083 456 9900         
FAX NO    :    012 804 8611                                                     
E-MAIL    :    sol@yorkcor.co.za                                                
WEBSITE         :   www.yorkcor.co.za                                           
ISSUED BY :    TISH STEWART PR ASSOCIATES                                       
CONTACT   :    Tish Stewart   (011) 325 4195   Cell:  082 443 6399              
FAX NO    :    (011) 325 4199                                                   
E-MAIL    :    tish@tspr.co.za                                                  
DATE :    01 April 2004                                                         
Date: 01/04/2004 04:26:03 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department