FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report of
Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16
under the
Securities Exchange Act of 1934
For the
month of March 2005
Commission
file number: 1-14872
SAPPI
LIMITED
(Translation
of registrant’s name into English)
48
Ameshoff Street
Braamfontein
Johannesburg
2001
REPUBLIC
OF SOUTH AFRICA
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
|
Form
20-F |
X
------- |
Form
40-F |
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b) (1):
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b) (7):
Indicate
by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If “Yes”
is marked, indicated below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
INCORPORATION
BY REFERENCE
Sappi
Limited's press release dated March 7, 2005, furnished by the Registrant
under this Form 6-K is incorporated by reference into (i) the Registration
statement on Form S-8 of the Registrant filed December 23, 1999, (ii) the
Section 10(a) Prospectus dated April 3, 2001 relating to the offer and sale of
the Registrant's shares to Participants under The Sappi Limited Share Incentive
Scheme, (iii) the Registration Statement on Form S-8 of the Registrant filed
December 15, 2004 in connection with The Sappi Limited 2004 Performance Share
Incentive Plan, (iv) the Registration Statement on Form S-8 of the Registrant
filed December 15, 2004 in connection with The Sappi Limited Share Incentive
Scheme and (v) the Section 10(a) Prospectus dated December 16, 2004 relating to
the offer and sale of the Registrant's shares to Participants under The Sappi
Limited 2004 Performance Share Incentive Plan.
FORWARD-LOOKING
STATEMENTS
In order
to utilize the "Safe Harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), Sappi Limited (the "Company")
is providing the following cautionary statement. Except for historical
information contained herein, statements contained in this Report on Form 6-K
may constitute "forward-looking statements" within the meaning of the Reform
Act. The words "believe", "anticipate", "expect", "intend", "estimate ", "plan",
"assume", "positioned", "will", "may", "should", "risk" and other similar
expressions which are predictions of or indicate future events and future trends
which do not relate to historical matters identify forward-looking statements.
In addition, this Report on Form 6-K may include forward-looking statements
relating to the Company's potential exposure to various types of market risks,
such as interest rate risk, foreign exchange rate risk and commodity price risk.
Reliance should not be placed on forward-looking statements because they involve
known and unknown risks, uncertainties and other factors which are in some cases
beyond the control of the Company, together with its subsidiaries (the "Group"),
and may cause the actual results, performance or achievements of the Group to
differ materially from anticipated future results, performance or achievements
expressed or implied by such forward-looking statements (and from past results,
performance or achievements). Certain factors that may cause such differences
include but are not limited to: the highly cyclical nature of the pulp and paper
industry; pulp and paper production, production capacity and pricing levels in
North America, Europe, Asia and southern Africa; any major disruption in
production at the Group's key facilities; changes in environmental, tax and
other laws and regulations; adverse changes in the markets for the Group's
products; any delays, unexpected costs or other problems experienced with any
business acquired or to be acquired; consequences of the Group's leverage;
adverse changes in the South African political situation and economy or the
effect of governmental efforts to address present or future economic or social
problems; and the impact of future investments, acquisitions and dispositions
(including the financing of investments and acquisitions) and any delays,
unexpected costs or other problems experienced in connection with dispositions.
These and other risks, uncertainties and factors are discussed in the Company's
Annual Report on Form 20-F and other filings with and submissions to the
Securities and Exchange Commission, including this Report on Form 6-K.
Shareholders and prospective investors are cautioned not to place undue reliance
on these forward-looking statements. These forward-looking statements are made
as of the date of the submission of this Report on Form 6-K and are not intended
to give any assurance as to future results. The Company undertakes no obligation
to publicly update or revise any of these forward-looking statements, whether to
reflect new information or future events or circumstances or
otherwise.
SAPPI
LIMITED
Incorporated
in the Republic of south Africa
(Registration
Number 1936/008963/06
JSE Code:
SAP
ISIN:
ZAE000006284
Results
of Annual General Meeting
Sappi’s
Annual General meeting was held in Johannesburg this morning (07 March 2005) and
all resolutions as proposed were duly passed by the requisite
majority.
The
chairman, Mr Eugene van As made the following statement at the
meeting:
“As we
said in our first quarter results announcement on 31 January 2005, the market
outlook for our major products is positive.
“Notwithstanding
a seasonally quieter first calendar quarter, forecasts of continued advertising
spending growth and of an improving supply demand balance of coated paper lead
us to expect improving market conditions for our coated paper.
“We have
announced price increases in Europe of Euro 50 per ton for woodfree coated
sheets and reels and Euro 30 per ton for mechanical coated reels, for deliveries
made after 01 April 2005. To date, some other producers have announced price
increases and we are confident that because of rising input costs and relatively
high operating rates, the new prices should prevail. In the USA we are
proceeding with the implementation of the US$60 per short ton price increase for
web product which we announced in December and which will now apply to all
orders entered after the 21 February and all product shipped after the 01 March
2005.
“We
continue to experience cost pressure in all our operations particularly in
respect of energy costs but also on other raw materials and in North America on
wood costs. We have active profit improvement plans in each of our businesses to
help counteract these pressures and we are confident that they will be largely
successful. However, margins cannot be restored to reasonable levels without the
price increases which we have announced.
“Our
focus is on improving the performance of our North American business. Ronee
Hagen, the new chief executive officer, has identified a number of actions and
her team is proceeding with implementing these. Some will have an immediate
short-term effect and others will only see the benefit towards the end of our
financial year. Key is logistics, where the combination of scheduling and
inventory management issues resulting from systems changes has been aggravated
by the tight demand for rail trucks and strong demand for our product from our
customers. This has resulted in unusually high distribution costs which will
continue, for at least the current quarter. Thereafter we expect to see a
gradual improvement both in inventory levels and in unit costs.
“The
volatility of the Rand and its current strength relative to the us dollar
continues to put pressure on the margins of our South African businesses, where
prices are largely us dollar influenced. Although the Rand weakened briefly to
around ZAR6.25/US Dollar it has again strengthened and was ZAR5.80/US Dollar at
the end of February.
“Nevertheless,
we are positive about the outlook for the balance of this year and we expect our
headline earnings per share for the second financial quarter to be similar to
the earnings per share reported in the equivalent quarter last
year.”
For
further information
André
Oberholzer
Group
Head Corporate Affairs
Tel +27
(0)11 407 8044
Fax +27
(0) 403 8236
Andre.Oberholzer@sappi.com
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date:
March 11, 2005
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SAPPI
LIMITED,
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by |
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/s/
D. G. Wilson |
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Name:
D. G. Wilson
Title:
Executive Director: Finance |