DB Investments' Interim Rslts
Anglo American PLC
23 August 2001
News Release
Anglo American plc ('AA plc') notification:
DB Investments ('DBI') announcement
AA plc wishes to draw attention to a DBI announcement attached hereto.
Accounting note:
DBI reported today proforma headline earnings for the six months to 30 June
2001 of US$744 million. These headline earnings include De Beers' diamond
earnings for the six months to 30 June 2001 and De Beers' share of AA plc's
headline profit for the six months to 31 December 2000.
The implications for AA plc's results for the six months to 30 June 2001 to be
announced on 7 September 2001 are as follows:
* Headline diamonds profit:
AA plc's headline diamonds profit can be arrived at after eliminating De
Beers' share of AA plc's earnings for the six months to 31 December 2000,
being US$342 million, from the US$744 million reported. Net of other minor
adjustments, this will result in reported headline diamonds profit of some
US$140 million.
* Headline De Beers investments profit:
AA plc has, historically, restated De Beers' results to bring them onto a
basis coterminous with AA plc's reporting dates. AA plc will therefore include
as headline profit in its results to 30 June 2001, its interest in De Beers'
share of AA plc headline profit for the five months to 31 May 2001 - the
effective date of the elimination of the cross-holding between the two
companies. These last five months of investments profit will be included in
the results for the six months to 30 June 2001.
End
DBI announcement:
No disclosure or comment before 07.00BST
Thursday 23 August 2001
DB Investments
PRO-FORMA INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2001
(DB Investments SA acquired 100% ownership of De Beers Consolidated Mines
Limited
and De Beers Centenary AG on 8 June 2001)
Sales of rough gem diamonds by the DTC, the marketing arm of De Beers, for the
first half of 2001 totalled $2 619 million, 25.5% lower than the equivalent
period in 2000. The slow down in the global economy was reflected in lower
demand for polished diamonds, particularly in the USA, and therefore for rough
diamonds and this was exacerbated by destocking of excess inventory of
polished diamonds held by the US retail sector at the end of last year.
Consequently, the first six months have been difficult for the diamond
industry with prices under pressure, liquidity tight and profitability eroded.
The rough diamond market remains depressed. Any improvement will depend on the
pace and extent of a recovery in economic growth, the relative strength of the
US dollar against other diamond consumer market currencies and, more
immediately, on the level of consumer demand for diamond jewellery over the
important Christmas season.
Following a constructive dialogue with the European Commission, the joint
venture between
De Beers and LVMH has received clearance to proceed with the jewellery
retailing venture to develop the global consumer brand potential of the De
Beers name.
The European Commission has issued a Statement of Objections following De
Beers' voluntary notification of its Supplier of Choice initiative. De Beers
will be responding to the issues raised and has already postponed the formal
launch of Supplier of Choice until the process of engagement with the
Commission has been completed.
DBI announces pro-forma interim results as follows:
DB INVESTMENTS SA
Consolidated Income Statement
for the half-year ended 30 June 2001
(Abridged and unaudited)
US Dollar millions
Pro De Beers De Beers
forma 6 months 12
6 to months
months 30 June to
to 2000 31
30 December
June 2000
2001
Diamond sales
-DTC 2 619 3 517 5 670
-Other 238 257 420
Trade investment and other income 338 290 681
3 195 4 064 6 771
Deduct:
Cost of sales 2 278 3 005 4 764
Depreciation and amortisation 65 65 115
Sorting and marketing 193 197 406
Exploration and research 64 55 164
Net diamond account 595 742 1 322
Add:
Investment income 172 171 263
Net interest 17 26 69
Surplus on realisation of fixed assets and 64 38 66
investments
848 977 1 720
Deduct:
Corporate expenses (Note 1) 186 19 41
Net income before taxation 662 958 1 679
Taxation 182 248 370
Net income after taxation 480 710 1 309
Attributable to outside shareholders in
subsidiaries 10 14 20
Own earnings 470 696 1 289
Share of income of associated companies and
joint ventures 163 286 617
Total net earnings 633 982 1 906
Headline earnings 744 877 1 707
Cash available from operating activities 733 2 045 2 237
(Note 2)
DB Investments SA acquired 100% ownership of De Beers Consolidated Mines
Limited (DBCM) and De Beers Centenary AG (DBCAG) on 8 June 2001. However, to
facilitate comparison with previous periods, the results for DB Investments
shown above have been prepared on a pro forma basis to include the results of
DBCM and DBCAG for the full six months ended
30 June 2001. Comparatives reflect the previously published combined results
of De Beers.
Consolidated Balance Sheet
30 June 2001
(Abridged and unaudited)
US Dollar millions
30 June 2001
Shareholders' interests 3 813
Outside shareholders' interests 80
3 893
Provisions for liabilities and charges 226
Net interest bearing debt (Note 3) 3 264
7 383
Fixed assets 4 414
Investments and loans (Note 4) 455
Net current assets (Note 5) 2 514
7 383
Notes and Comments
1. Corporate expenses include a provision for early redemption of DBCAG's
Sterling Bonds and non recurring fees relating to the acquisition of De
Beers by DBI.
2. The figure of US$ 2,045 million shown as cash available from operating
activities for the six months ended 30 June 2000 included US$ 1,237
million generated from drawing down diamond stockpiles.
3. Cash has been offset against interest bearing debt.
4. In the period from 1 July 2001 to date, DBCM's disposals of listed shares
totalled R 2,3 billion (US$ 284 million). DBCM no longer holds interests
in FirstRand or BHP Billiton whilst its holding in AngloGold has been
reduced to less than 1%.
5. Net current assets include diamond stocks.
6. No dividends have been declared during the period under review.
7. An amount of US$ 3,175 million was drawn against DBI's US$ 3,550 million
Senior Debt facility at 30 June 2001. It is planned to utilise a further
US$ 375 million in the near future in order to effect early redemption of
the Sterling Bonds as referred to above. No drawing had been made against
the US$ 1 billion revolving facility at 30 June 2001.
Contacts:
De Beers London:
Andy Lamont +44 20 7430 2515/+44 7775 855279
Joan Braune +44 20 7430 3505/+44 7775 855278
Kate Evan-Jones +44 20 7430 3531/+44 7720 350234
De Beers SA
Roger van Eeghen +27 11 374 7127/+27 83 289 6680
Tracey Peterson +27 11 374 7388/+27 83 408 7173
Further information may be obtained by visiting www.debeersgroup.com. A
selection of images may be downloaded from www.newscast-online.com.
Latest directors dealings
- 11 hours ago Savannah Energy
- 12 hours ago Buccaneer Energy PLC
- 13 hours ago Savannah Energy
- 13 hours ago Carclo
- 13 hours ago Schroder Japan Growth Fund