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DTA - Delta EMD Limited - Trading Statement for the half year ending 27 June 2010 Delta EMD Limited Incorporated in the Republic of South Africa Registration number 1919/006020/06) Share code: DTA ISIN: ZAE000132817 ("Delta" or "the Group") TRADING STATEMENT FOR THE HALF YEAR ENDING 27 JUNE 2010 Delta shareholders are referred to the Group`s 2009 Annual Report, and the Chairman`s Review contained therein, dated 19 February 2010. Global economic conditions continue to soften demand for disposable alkaline batteries, with a corresponding contraction of global demand for alkaline grade EMD. The Group`s sales of lower priced zinc carbon EMD have replaced alkaline grade EMD sales, resulting in a less attractive sales mix and lower average selling prices during the half year. Production volumes were reduced during the first half as planned to maintain desired stock levels and to allow for equipment maintenance as well as the set up required for the production of the Group`s new premium grade product. Reduced production has affected the Group`s operating profit due to under-recovery of manufacturing overheads. Operating profit for the half year ending 27 June 2010 is forecast to be lower than for the same period in 2009 due to the one-off sales of offshore stocks made during the first six months of 2009, as well as the less attractive sales mix and increased under-recovery of manufacturing overheads. Product exports from the Nelspruit plant have been affected by the Transnet strike action. The following forecasts anticipate that the current shipment backlog, together with planned volumes, will be shipped and recorded as revenue before 27 June 2010. Earnings and Headline earnings after taxation for the six months ending 27 June 2010 are forecast to be between R26 million and R37 million (2009: Earnings R58 million, Headline Earnings R56 million). Earnings and Headline earnings per share for the six months ending 27 June 2010 are forecast to be between 52 cents and 75 cents (2009: EPS 118.9 cents, HEPS 115.9 cents) The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Group`s auditors. Delta`s interim results for the six months ending 27 June 2010 are expected to be released on SENS on 11 August 2010. Nelspruit 27 May 2010 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 27/05/2010 09:25:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
