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 June, 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 June 23, 2003, providing a trading update,
furnished by the Registrant under this Form 6-K, 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 April 3, 2001 relating to
the offer and sale of the Registrant's shares to Participants under The Sappi
Limited Share Incentive Scheme.
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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.
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SAPPI LIMITED
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Press Release
Johannesburg, 23 June 2003
Sappi releases Trading Update
Sappi today provided a trading update of market conditions in advance of its
closed period and announcement of third quarter results on 31 July 2003.
Introduction
In announcing second quarter results to March 2003, the group gave a clear
indication that earnings per share for the third quarter would not match those
of the second quarter. Since then, conditions in Sappi's main markets have
deteriorated further than expected, with continued pressure on both prices and
volumes. Third quarter earnings per share- traditionally the weakest quarter
for Sappi - therefore could be approximately 50% of those of the second
quarter.
Market conditions
The improvement in market conditions anticipated in the United States has not
yet materialised and domestic demand remains subdued.
In Europe there has been a considerable shortfall in volumes due to the very
weak economic conditions and some downward pressure on prices.
In South Africa, the continued strength of the rand against the dollar has
reduced export margins, and substantial allowances have had to be made in
domestic prices to counter imported competition.
Going forward
Although the expected upturn has not yet materialised in the US, we do expect
an improvement in the web business in the next quarter, and price increases
have been announced by two major suppliers. Conditions in Europe remain
depressed, although falling pulp prices may bring some margin relief. The
current strength of the rand and pulp price decreases will adversely impact
the South African business.
The group's leadership position across all major markets, supported by
excellent distribution systems and its pulp integration strategy, have
continued to assist the group in weathering these extremely tough markets,
which have unusually affected all our markets and regions at the same time.
While earnings per share for the full year are now likely to be less than last
year, earnings for the fourth quarter 2003 are expected to be better than
those for the third quarter. Given current market uncertainty and volatility,
we will give further guidance at the time of our third quarter results
announcement.
For further information:
Andre Oberholzer
Corporate Affairs and Communication Manager
Sappi Limited
Tel +27 (0)11 407 8044
Fax +27 (0)11 403 8236
Andre.Oberholzer@za.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.
SAPPI LIMITED
by /s/ D.G. Wilson
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Name: D.G. Wilson
Title: Executive Director:
Finance
Date: June 25, 2003