SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
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, 2003
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
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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.
Yes No X
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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 3, 2003, furnished by the Registrant
under this Form 6-K, except for the second sentence of the second paragraph,
the second sentence of the third paragraph, the second and third sentences of
the fourth paragraph, and the fifth paragraph thereof, is incorporated by
reference into the Registration Statement on Form S-8 of the Registrant (File
No. 333-11304) and the Section 10(a) Prospectus dated February 13, 2003
relating to the offer and sale of the Registrant's shares to Participants
under The Sappi Limited Share Incentive Scheme.
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
Registration Statement on Form F-1 and other filings with 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 filing 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.
CHAIRMAN'S STATEMENT AT THE SAPPI LIMITED ANNUAL GENERAL MEETING: 3 MARCH 2003
Trading conditions in our major coated fine paper markets remain difficult.
However, demand for our products has increased compared to the low levels
prevailing after the events of 11 September 2001 because of improvements in
advertising in print media. Current global supply levels for coated fine paper
still exceed demand and we continue to curtail output to match our customers'
needs.
In spite of the slow economy and downward pressure on pricing, our European
business is producing reasonable returns, partly as a result of the stronger
Euro (which helps to contain input costs) and partly as a result of its
operating efficiency. We expect some price recovery, announced recently in
Southern Europe, to become effective during March.
In North America, the announced price increases on coated fine paper continue
to be implemented. The effect on average prices will however be partly offset
by a shift in sales mix towards lower-priced products but margins should begin
to improve in the second half year.
The strength of the Rand is putting pressure on the margins of our South
African business as most of its exports are priced in Dollars. This will be
partly offset by Dollar pulp price increases. However, the effect of price
increases for dissolving pulp will only be seen when they are realised next
quarter.
For the current quarter we expect earnings per share to be similar to the
first quarter and we still expect earnings for the full year to show
improvement over last year.
We recently announced that Jonathan Leslie will be joining the company in
April this year as CEO and we look forward to welcoming him to the Group.
For further information please contact:
Robert Hope
Director Strategic Development
Sappi Limited
Tel +27 (0)11 407 8492
Fax +27 (0)11 403 1493
Robert.Hope@za.sappi.com
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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.
SAPPI LIMITED
by /s/ D.G. Wilson
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Name: D.G. Wilson
Title: Executive Director: Finance
Date: March 6, 2003