Trading Statement-Replacemt

Smith (DS) PLC
14 October 2004


The 'Trading Statement' announcement released today at 7.00am under RNS No 0618E,
should have been issued under the Company name of 'Smith (DS) PLC' and not under
the Company name of 'Davis Service Group PLC'. 

The announcement text is unchanged and is reproduced in full below.



                                                                 14 October 2004

                                  DS SMITH PLC

                            PRE-CLOSE TRADING UPDATE


DS Smith Plc, the international packaging manufacturer and office products
wholesaler, is releasing the following trading update prior to the half year end
on 31 October 2004.


As indicated at the outset of our financial year, trading conditions have been
highly competitive, particularly in Paper, and input costs have risen.  Recent
increases in energy and polymer costs are significant, greater than expected,
and show no signs of abating.  We are taking action, where possible, to mitigate
these higher input costs.


Paper and Corrugated Packaging


The corrugated packaging market across Europe has been slightly stronger during
calendar year 2004 but it remains patchy and prices are under pressure
throughout the supply chain.  Our Corrugated Packaging businesses in the UK and
continental Europe have continued to make good progress, benefiting from
operational improvement and their focus on higher value added segments.
However, this only partially offsets much lower results in our Paper business,
which continues to be significantly affected by the cyclical downturn in the
European market for corrugated case material paper.  We have achieved good
production volumes in Paper but the squeeze on margins from lower prices is
being compounded by substantial increases in gas costs.


We await the final report of the Competition Commission's inquiry into our
completed acquisition of LINPAC Containers following its provisional findings
that the transaction is not expected to lead to a substantial lessening of
competition.  LINPAC Containers continues to be operated separately and is
performing in line with our expectations.


Plastic Packaging


In Plastic Packaging, sales of returnable transit packaging have been flat,
while slower demand from European beverage customers during the summer has
affected our liquid packaging and dispensing business.  The division's profits
continue to be affected by the results of our smaller businesses. Polymer cost
increases in the first quarter of the financial year have largely been
recovered.  The extent to which we will be able, during this financial year, to
recover recent further substantial polymer cost increases, is uncertain.


Office Products


Market conditions for office products have improved slightly but prices remain
under pressure.  Spicers has performed solidly in its major UK and French
businesses and it has continued to grow in Germany and Spain.  In Italy,
preparations are well advanced for a successful launch in November 2004.  The
stationery manufacturing business, John Dickinson, continues to be affected by
the market trend towards own-label products and greater price pressure.



DS Smith's Interim results for the half year to 31 October 2004 will be
announced on 8 December 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
            The company news service from the London Stock Exchange