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CARMEL CONTAINER SYSTEMS, LTD. REPORTS RESULTS FOR THE QUARTER ENDING SEPT. 30, 1993

 TEL AVIV, Nov. 12 /PRNewswire/ -- Carmel Container Systems, Ltd. (AMEX: KML), a leading Israeli designer and manufacturer of containers, packaging materials and related products reported yesterday its unaudited consolidated financial results for the quarter ending Sept. 30, 1993. Carmel's ordinary shares are traded on the American Stock Exchange.
 Revenues from sales for the nine months ended Sept. 30, 1993 were New Israeli Shekels ("NIS") 159,811,000 ($55,800,000), as compared to NIS 160,723,000 for the corresponding period of 1992. Net income for the first nine months of 1193 amounted to NIS 4,923,000 ($1,719,000) as compared to a loss of NIS 329,000 for the first nine months of 1992. Income per share for the first nine months of 1993 was NIS 1.96 ($.68) as compared to a loss per share of NIS 0.13 in the first nine months of 1992.
 The financial results for the first nine months of 1993 were affected primarily by the following factors: (i) gradual improvement in the results of operations of the company's largest corrugating carton plant, as a result of the reorganization of its production processes of the end of 1992 and the first quarter of 1993; (ii) one of the company's subsidiaries continued to report an improvement in profitability during the first nine months of 1993 substantially decreased, thereby significantly improving the net income for such period, as a result of the decrease in financial liabilities during 1992 and the first nine months of 1993 together with the increase in the difference between the rate of inflation and the rate of devaluation of the NIS against the U.S. dollar during the first nine months of 1993 (which difference was 4.5 percent in the first nine months of 1993 as compared to 2.5 percent in the corresponding period of 1992); and (iv) the company sold its holdings in Ofek Paper Products Ltd. and its subsidiaries.
 Gross profit for the first nine months of 1993 amounted to NIS 28,249,000 ($9,864,000) as compared to NIS 28,644,000 in the first nine months of 1992. Gross profit margin for the first nine months of 1993 was 17.7 percent of sales as compared to 17.8 in the first nine months 1992.
 Operating income for the first nine months of 1993 amounted to NIS 13,246,000 ($4,625,000) as compared to NIS 9,124,000 in the first nine months of 1992. Operating income margin for the first nine months of 1993 was 8.3 percent of sales as compared to 5.7 in the first nine months of 1992.
 Operating income for the third quarter of 1993 amounted to NIS 4,145,000 ($1,447,000) as compared to a loss of NIS 802,000 in the third quarter of 1992. During the third quarter of 1992, the company created a reserve in an amount of NIS 3,147,000 for expenses associated with the reorganization plan of its largest corrugated carton plant.
 Financial expenses during the first nine months of 1993 decreased significantly to NIS 3,225,000 ($1,126,000) as compared to NIS 5,308,000 in the first nine months of 1992. Financial expenses in the first nine months of 1993 were 2.0 percent of sales, as compared to 3.3 percent in the first nine months of 1992.
 This decrease was due primarily to the decrease in financial liabilities during 1992 and the first nine months of 1993 and the increase in the difference between the rate of inflation and the rate of devaluation of the NIS against the U.S. dollar. However, financial expenses during the third quarter of 1993 increased to NIS 1,098,000 ($383,000) as compared to NIS 113,000 in the third quarter of 1993, primarily due to the decrease in the difference between the rate of inflation and the rate of devaluation during the third quarter of 1993, which affected the financial expenses relating to the company's foreign currency liabilities.
 Income before taxes for the first nine months of 1993 was NIS 10,107,000 ($3,529,000) as compared to NIS 3,984,000 in the first nine months of 1992. The pre-tax income margin for the first nine months of 1993 amounted to 6.3 percent of sales as compared to 2.5 percent for the first nine months of 1993.
 Equity in net losses of unconsolidated subsidiaries in the first nine months of 1993 amounted to NIS 744,000 ($260,000) as compared to NIS 2,402,000 in the first nine months of 1992. Due to the sale of Ofek Ltd. in April 1993, the company incurred no losses from subsidiaries in the third quarter of 1993 as compared to a loss of NIS 771,000 in the third quarter of 1992.
 Income after tax and after the company's share in losses of its non-consolidated subsidiaries for the first nine months of 1993 increased to NIS 4,923,000 ($1,719,000), which is 3.1 percent of sales, as compared to a loss of NIS 329,000, for the first nine months of 1992. Income after tax in the third quarter of 1993 increased to NIS 1,575,000 ($550,000), as compared to a loss of NIS 1,497,000 in the third quarter of 1992.
 In the first nine months of 1993, the company's cash flow from operations was NIS 9,055,000 ($3,161,000) and its cash flow from the sale of a subsidiary and equipment was NIS 6,984,000 ($2,438,000). Such cash flow was primarily utilized to pre-pay certain new equipment, in the amount of NIS 7,952,000 ($2,776,000) and to decrease the company's long-term and short-term financial indebtedness in the amount of NIS 5,742,000 ($2,004,000) and to increase cash and securities in the amount of NIS 2,312,000 ($807,000).
 All amounts set forth herein in NIS have been adjusted to reflect changes in the Israeli Consumer Price Index through Sept. 30, 1993. The translation of NIS amounts into U.S. dollars is at the rate of exchange of NIS 2.864 to $1.
 -0- 11/12/93
 /CONTACT: Yoram Shetrit of Carmel Container Systems, Ltd., 011-972-3-9218755, or David P. Stone of Weil Gotshal & Manges, 212-310-8430/
 (KML)


CO: Carmel Container Systems, Inc. ST: IN: PAP SU: ERN

LD-TM -- NY004 -- 3523 11/12/93 08:31 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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