SENS

08-11-2010

Trading statement for the half-year to 30 September 2010


TONGAAT HULETT:  TRADING STATEMENT FOR THE HALF-YEAR TO 30 SEPTEMBER 2010

Tongaat Hulett Limited
(Registration number 1892/000610/06)
Share code: TON
ISIN ZAE000096541

TONGAAT HULETT:  TRADING STATEMENT FOR THE HALF-YEAR TO 30 SEPTEMBER 2010

Tongaat Hulett issues the following voluntary trading statement for the half-year to 30 September 2010.

Headline earnings are expected to increase by 12% to R507 million for the half-year to 30 September 2010, compared to the R452 million earned in the same period last year. Headline earnings per share for the half-year are expected to be 482 cents per share (six months to September 2009: 438 cents per share), an increase of 10%. Net profit per share is also expected to reflect an increase of approximately 10%.

The past six months have been characterised by counteractive factors. Tongaat Hulett is starting to benefit from the targeted sugar production growth in Mozambique and Zimbabwe. Sugar production in South Africa has been affected by the most severe drought since the mid 1990’s negating the hectares under cane supplying Tongaat Hulett’s mills increasing by some 2 000 hectares. European and world sugar prices were favourable. In Mozambique, local sugar prices have not kept pace with the weakening of the Metical. Exchange rates have been less favourable than in the corresponding six months in 2009. In the current economic climate, the sale of development land remained depressed.

Tongaat Hulett’s profit from operations for the half-year to 30 September 2010 is expected to increase by 10% to R963 million from the R873 million earned in the comparative six months to 30 September 2009. This includes profit from the Mozambique sugar operations of R163 million (2009: R79 million), the Zimbabwe sugar operations of R303 million (2009: R326 million), the South African agriculture, milling and refining operations of R47 million (2009: R77 million) and the various other sugar and downstream activities of R155 million (2009: R156 million). Profit from the starch operations amounts to R125 million (2009: R117 million) and profit from the land conversion and development operations is R97 million (2009: R72 million). A net gain of R73 million is reflected on the centrally accounted and consolidation items (2009: R46 million gain), which again includes a gain on the recognition of an unconditional entitlement to an employer surplus account allocation in the Tongaat Hulett pension fund.

This trading statement is issued in accordance with the JSE Listings Requirements. The above information has not been reported on by the auditors.

The interim results for the half year ended 30 September 2010 are scheduled for release on Monday, 15 November 2010.

Tongaat
8 November 2010