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Hadera Paper Ltd. reports financial results for third quarter and nine months.

Hadera Paper Ltd. (AMEX:AIP)(the "Company" or "Hadera Paper")today reported financial results for the third quarter and first nine monthsended September 30, 2009. The Company, its subsidiaries and associatedcompanies - is referred to hereinafter as the "Group".

Since the Company's share in the earnings of associatedcompanies constitutes a material component in the Company's statement ofincome (primarily on account of its share in the earnings of Mondi HaderaPaper Ltd. ("Mondi Hadera") and Hogla-Kimberly Ltd. ("H-K")), before thepresentation of the consolidated data below, the aggregate data which includethe results of all the companies in the Hadera Paper Group (including theassociated companies whose results appear in the financial statements under"earnings from associated companies") is being presented, without consideringthe rate of holding therein and net of mutual sales.

The aggregate sales during the reported period amounted to NIS2,409.2 million, as compared with NIS 2,442.5 million in the correspondingperiod last year, representing a decrease of approximately 1.4%.

The aggregate sales in the third quarter this year amounted toNIS 790.4 million, as compared with NIS 823.9 million in the correspondingperiod last year, representing a decrease of 4.0% and as compared with NIS788.8 million in the second quarter of the year.

The aggregate operating profit totaled NIS 186.7 millionduring the reported period, as compared with NIS 160.5 million in thecorresponding period last year, representing growth of approximately 16.3%.

The aggregate operating profit totaled NIS 68.7 million in thethird quarter of the year, as compared with NIS 49.2 million in thecorresponding quarter last year, representing growth of 39.6% and as comparedwith NIS 54.1 million in the second quarter of the year.

The Consolidated Data set forth below excluding the results ofoperation of the associated companies: Mondi Hadera and H-K. ConsolidatedData include also the sales turnover of Carmel Containers Systems Ltd.("Carmel") and Frenkel- C.D. Ltd. ("Frenkel- C.D.") that were consolidated asof September 2008, as a result of the fact that the company's holding rate inCarmel has increased from 36.2% to 89.3%, and at Frenkel CD, indirectly, from37.93% to 52.72%.

Commencing January 1, 2009, the company applies IFRS 8,"Operating Segments", and has accordingly recognized the packaging productsand board segment, which includes the operations of Carmel and Frenkel C.D.,as a separate segment. The associated companies H-K and Mondi Hadera werealso recognized as independent segments. For further details, see below.

Consolidated sales in the reported period amounted to NIS654.4 million, as compared with NIS 447.2 million in the corresponding periodlast year, representing an increase which was due mainly to the consolidationof the data of Carmel and Frenkel C.D. in the reported period.

Consolidated sales in the third quarter, amounted to NIS 220.4million, as compared with NIS 171.4 million in the corresponding quarter lastyear.

The operating profit totaled NIS 15.1 million during thereported period, as compared with NIS 38.0 million in the correspondingperiod last year. The decrease in operating profits originated from theerosion of selling prices coupled with the quantitative erosion of packagingpaper and recycling, as a result of the imports of packaging paper at dumpingprices that was offset by the recording of non-recurring revenues of NIS 16.4million on account of a unilateral dividend.

The operating profit amounted to NIS 1.2 million in the thirdquarter of the year, as compared with operating profit of NIS 7.9 million inthe corresponding quarter last year.

The net profit attributed to the Company's shareholders amounted to NIS70.2 million in the reported period, as compared with net profit of NIS 59.5million, that is attributed to the company's shareholders in thecorresponding period last year.

The net profit attributed to the Company shareholders during the reportedperiod was affected by the improvement in operating profitability at some ofthe groups companies in Israel and in Turkey and by the recording of earningsas a result of the distribution of a unilateral dividend on account of theapplication of a preferred share by an associated Company that generated netrevenues of NIS 8.4 million for the company. Moreover, a reduction in theCompany's share in the losses on account of the operations in Turkey (KCTR)compared with the corresponding period last year also contributed to theimproved profitability.

The net profit for the third quarter this year amounted to NIS35.4 million, as compared with a net profit of NIS 20.2 million in thecorresponding quarter last year.

Revenues from taxes on income amounted to NIS 6.0 million inthe reported period, as compared with tax expenses of NIS 4.2 million in thecorresponding period last year. The tax revenues originated primarily fromthe decrease in pretax profits in the amount of NIS 25.7 million, coupledwith the change in the tax rates the following years that generated deferredtax revenues in the amount of NIS 9.4 million, that were offset as a resultof recording a provision for taxes on account of events that were includedthe reported period.

The long-term liabilities (including current maturities)amounted to NIS 832.6 million as at September 30, 2009, as compared with NIS828.2 million as at September 30, 2008. The long-term liabilities increasedin relation to last year, primarily as a result of long-term loans that wereassumed, designated for the financing of payments on account of Machine 8.This increase was offset as a result of the repayment of the old debentureseries, coupled with the repayment of a capital note to an associated companyand the cash flows from operating activities.

Basic earnings per share amounted to NIS 13.86 per share($3.69 per share) in the reported period, as compared with basic earnings pershare of NIS 11.75 per share ($3.44 per share) in the corresponding periodlast year.

Basic earnings per share amounted to NIS 7.00 per share in thethird quarter ($1.86 per share), as compared with earnings of NIS 3.99 pershare ($1.17 per share) in the corresponding quarter last year.

The inflation rate during the reported period amounted to3.4%, as compared with an inflation rate of 4.4% in the corresponding periodlast year.

The financial expenses during the reported period amounted toNIS 14.8 million, as compared with NIS 11.9 million in the correspondingperiod last year.

The US dollar exchange rate was revaluated by 1.2% during thereporting period, in relation to a revaluation of approximately 11% duringthe corresponding period last year. 2009 Al Bawaba (www.albawaba.com)

2009 Al Bawaba (Albawaba.com)

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Publication:Albawaba.com
Article Type:Financial report
Date:Nov 29, 2009
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