Pre-Close Trading Update

Smith (DS) PLC
21 April 2004



                                                                   21 April 2004

                                  DS SMITH PLC

                            PRE-CLOSE TRADING UPDATE



DS Smith Plc (LSE:SMDS), the international packaging manufacturer and office
products wholesaler, is releasing the following trading update prior to its year
end on 30 April 2004.



The Group's results for 2003/04 are anticipated to be in line with market
expectations.  As stated previously, margins in Paper have been significantly
affected throughout the financial year by the cyclical downturn in the paper
market but this has been partly offset by profit improvements in Corrugated
Packaging and at Spicers.  The acquisition of LINPAC Containers was successfully
completed on 22 March 2004.



Paper and Corrugated Packaging



In response to continued margin pressure in Paper during the second half of the
financial year and following price increases by continental producers, we
increased paper prices from the end of March; as a consequence we have also
announced box price increases.  At this late stage in the year these increases
will not yield a significant benefit to the 2003/04 results.  Our Corrugated
Packaging operations have continued to make progress due to cost control and
successfully targeting higher added value or growing market segments.  Trading
at LINPAC Containers has continued to be good and in line with the assumptions
made at the time of the acquisition.



Plastic Packaging



Performance in the second half of the financial year has broadly followed the
trends of the first half.  Returnable transit packaging has continued to make
good progress but results in liquid packaging and dispensing have been affected
by weaker sales of some higher margin products.  Progress in Plastic Packaging
as a whole has continued to be held back by the results of the small specialist
coatings and modified atmosphere packaging operations.



Office Products



Spicers has continued to advance despite poor demand for office products across
Europe.  The UK business has benefited from further operational improvement and
maintaining high service levels, while Spicers Germany is making encouraging
progress towards profitability.  John Dickinson has continued to be affected by
difficult trading conditions in branded products, although demand for Black n'
Red books remains strong.



Pension Scheme



The triennial valuation of the Group's UK pension scheme is currently underway
and the report is due in the autumn.  As previously indicated, the Board expects
there to be a charge to the Group's profit and loss account in respect of the
scheme with effect from financial year 2004/05.



Outlook



Looking ahead, key factors will be the outcome of the recent Europe-wide paper
price rises and the achievement of our immediate objective in Paper and
Corrugated Packaging of recovering increased input costs.  Our 2004/05 result
will benefit from the profit contribution arising from the acquisition of LINPAC
Containers and our continuing drive for performance improvement across the
Group.



DS Smith's Preliminary results for the year to 30 April 2004 will be announced
on 24 June 2004.




Enquiries


DS Smith Plc                                                       020 7932 5000
Tony Thorne, Group Chief Executive
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager

Financial Dynamics                                                 020 7269 7291
Richard Mountain/Robert Gurner




                      This information is provided by RNS
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