Südzucker International Finance B. V. Südzucker AG ... - Xetra

Recent Developments and OutlookThe consolidated operating result for the 2003/04 financial year is likely to benefit from the highvolume of sugar produced in the past 2002 crop season and from the realisation of further synergyeffects deriving from the restructuring within the Südzucker Group. In addition, the acquisition of the67,000 tonnes maximum quota of BØghin Say is likely to yield positive results. Südzucker Group alsoexpects a continuation of the positive development in the specialties segment, both at Freiberger andin functional food. Due to this year’s long drought period in some regions, however, SüdzuckerGroup expects this year’s beet harvest and sugar production to be negatively affected. In thistransitional year for the Eastern European economies, Südzucker Group also expects lower earningsfrom its operations in these countries. The decline of the global sugar market price, compounded bythe weak US dollar, will also lead to a decline in earnings. Overall, Südzucker Group estimates thatthe positive developments will not fully offset these negative effects and consequently does notexpect to be able to match the operating result of the 2002/03 financial year.In respect of the net income for the year and earnings per share, Südzucker for 2003/04 anticipates anincrease compared to 2002/03, in view of an improved restructuring result and an expected reductionin goodwill amortizations ( 1 ), although the tax rate is set to normalise again because favourableeffects will not be recurring.Amsterdam and Mannheim, December 2003Südzucker International Finance B.V.Südzucker AG Mannheim/Ochsenfurt( 1 ) Based on the current official IASB schedule for introduction of Exposure Draft 3 (Business Combinations) as officialinternational accounting standard within the first quarter of 2004 and encouraging early application.G-1