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, 2008
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.
|
Yes
|
No
|
X
-------
|
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
INCORPORATION
BY REFERENCE
Sappi
Limited’s SENS Announcement, dated March 3, 2008, regarding the Annual
General Meeting Update, furnished by the Registrant under this Form 6-K is
incorporated by reference into (i) the Registration Statements on Form S-8
of the Registrant filed December 23, 1999 and December 15, 2004 in connection
with The Sappi Limited Share Incentive Scheme, (ii) the Section 10(a)
Prospectus relating to the offer and sale of the Registrant’s shares to
Participants under The Sappi Limited Share Incentive Scheme, (iii) the
Registration Statements on Form S-8 of the Registrant filed December 15, 2004
and December 21, 2005 in connection with The Sappi Limited 2004 Performance
Share Incentive Plan and (iv) the Section 10(a) Prospectus 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, input costs including
raw material, energy and employee costs, 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
|
Announcement
Embargoed not for
release before 03 March 2008 14:30 (SA time)
AGM
UPDATE
We reported our
results for the our first financial quarter on the 31st of
January, which reflected the 6th
consecutive quarter of year-on-year improvements in operating performance
excluding special items.
At the same time we
said that we expected the operating profit excluding special items to improve
again in our second quarter on a year-on-year basis. We are on track
to achieve this.
Looking at our
business on a region by region basis, the Southern African businesses and Forest
Products in particular continue to perform strongly, supported by good demand,
improving prices and the weakening Rand. Management is acutely aware
of rising input and labour costs and this remains a key issue.
The SA business was
unfavourably impacted by the power disruptions earlier this
quarter. After a major disruption for 3-4 days we reached agreement
with the national utility, Eskom, to reduce our purchases by generating more of
our own power. We have subsequently operated without further major
disruptions; however, the additional power comes at additional
cost.
The US$500 million
Saiccor expansion is due to be completed in the second calendar
quarter. At full output the project will increase capacity of
chemical cellulose by about a third. With pulp prices at current high
levels the timing of the start up appears very favourable. The full
impact will only be felt in the next financial year. The project will
also improve Saiccor’s energy efficiency and result in a further reduction in
our power purchases.
Our North American
business has shown a steadily improving trend as a result of improvements across
all disciplines. We expect to see further improvements from this
business but are conscious of the warnings from economists about a possible slow
down in the US economy. Demand for coated fine paper in web form and
price realisation continues to improve; however, in sheet form the markets
continue to be influenced by low cost imports. We still have some way
to go with the turnaround of this business and the improving trend is
encouraging.
Our most critical
requirement is to fix our European business. The position has not
improved and prices have edged up off the bottom in some markets; pressure
remains on our sales force to increase prices further. Input cost
pressure is continuing, as it is group-wide, and we are exploring every area of
our business for efficiencies and cost reductions. While we continue
to reduce our costs, returning to acceptable profitability in Europe with
current high input cost levels does require material price
increases.
There seems to be
general understanding in the market that prices have to go up and there are
media reports of price increases by all major producers which sounds
encouraging.
After years of
declining prices in Europe and high operating rates we are convinced that
consolidation of the segment is needed to sustain long term
profitability.
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 5,
2008
| SAPPI LIMITED | |||
|
|
by | /s/ D.J. O’Connor | ||
| Name: D.J. O’Connor | ||||
| Title: Group Secretary | ||||