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 ACRE, Israel, Aug. 12 /PRNewswire/ -- Electrochemical Industries (Frutarom) Ltd. (AMEX: EIF) reported today results for the first six months of 1993:
 The company's operational results for the first six months of 1993 reflect the low price level of PVC -- the main product of the company.
 Consolidated sales amounted to US$57.6 million compared to US$60.2 million for the same period last year. Sales for the second quarter were US$29.1 million.
 During April-May 1993, the Acre plant was closed down for a period of 13 days due to a labor dispute. The dispute was settled and an agreement was reached to reduce the labor status of the company by 60 employees. The cost of settlement totals a one-time expense in the amount of $1.4 million.
 The consolidated net loss for the period under review (including the above-mentioned one-time payment) amounted to US$3.1 million, including US$2.2 million for the second quarter 1993, compared to a net profit of US$1.4 million for the same period last year and a net profit of US$2.1 million for the year 1992.
 The low PVC price level in western Europe, the major export market, caused management to move exports to markets yielding higher revenues. As of July 1993, portions of export are transferred to markets showing a trend of increasing PVC prices, mainly the Far East.
 Expert publications, following the international PVC development, indicated that in the coming years, demand for PVC will increase in the Far East mainly in India and China. A substantial economic growth is expected in these countries in the near future which will result in a considerable increase of PVC consumption for infrastructure investments.
 The cooperation with Palram from Kibutz Ramat Yohanan in manufacturing down-stream products has proven to be very successful. Sales of the subsidiary in England -- Durham Plastic Ltd. for the first six months 1993 amounted to US$1.9 million including US$1.1 million for the second quarter 1993 with a good gross profit. As a result, management is contemplating doubling the production capacity in the course of next year. In compliance with the company's strategy, management is exploring additional investment possibilities in down- stream products.
 The consolidated sales of Frutarom Ltd., a fully owned subsidiary, amounted to US$14.7 million including US$7.3 million for the second quarter 1993, compared to US$13 million for the corresponding period last year -- an increase of 12.9 percent.
 In June 1993, Frutarom Ltd. and Meer Corporation of New Jersey USA have reached an agreement in principle for the sale of Meer to International Frutarom Corp., a U.S. subsidiary of Frutarom Ltd. As of July 1, 1993 Meer Corp. is jointly operated with the management of Frutarom Ltd. The sales turnover of Meer Corporation in 1992 was US$23.5 million.
 Condensed Consolidated Balance Sheet
 As at June 30, 1993
 (US$ 000)
 June 30, 1993 June 30, 1992 Dec. 31, 1992
 Current assets 61,516 60,143 58,642
 Long Term investments,
 deposits & loans 16,273 16,662 15,678
 Fixed assets, net 60,534 59,037 60,119
 Deferred expenses 3,634 3,558 3,847
 Total-current assets 141,957 139,400 138,286
 Current liabilities 40,431 30,668 33,401
 Long term debt 34,731 38,178 34,515
 Convertible debentures 19,043 19,395 18,384
 Deferred tax liability 9,152 11,010 10,401
 Minority interest 746 29 633
 Shareholders' equity 37,854 40,120 40,952
 Total 141,957 139,400 138,286
 Consolidated Statement of Operation
 As at June 30, 1993
 (US$ 000)
 Periods ended Six Months Three Months
 June 30 1993 1992 1993 1992 12/31/92
 (unaudited) (unaudited) (audited)
 Total sales 57,604 60,251 29,042 29,679 120,475
 Income (loss) from
 operations before
 financing (997) 1,585 (488) 829 2,740
 Financing expense-net 2,049 1,074 955 783 2,443
 Income (loss) after
 financing (3,046) 511 (1,443) 46 297
 Income (loss) before
 taxes on income (2,694) 598 (1,520) 248 620
 Taxes on income (tax
 benefit) (1,065) (775) (776) (940) (1,451)
 Total (1,629) 1,373 (744) 1,188 2,071
 Minority share in
 losses (profits) of
 subsidiaries (91) 14 (38) (9) 13
 Net income (loss) before
 extraordinary item (1,720) 1,387 (782) 1,179 2,084
 Extraordinary item:
 Expenses resulting
 from early retirement
 of employees net of
 related taxes on
 income (1,378) -- (1,378) -- --
 Net income (loss) for
 the period (3,098) 1,387 (2,160) 1,179 2,084
 Net income (loss) per
 NIS 1 nominal value (0.13) 0.06 (0.09) 0.05 0.09
 Primary earning (loss)
 per NIS 1 nominal
 value share before
 extraordinary item (0.07) 0.06 (0.03) 0.05 0.09
 -0- 8/12/93
 /CONTACT: Sefi Donner of Electrochemical Industries (Frutarom) Ltd., 011-972-4-851510/

CO: Electrochemical Industries (Frutarom) Ltd. ST: IN: CHM SU: ERN

TS-LG -- NY005 -- 2052 08/12/93 10:29 EDT
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Publication:PR Newswire
Date:Aug 12, 1993

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