Strauss operating profit rose in the second quarter
Operating profit at Strauss Group climbed 16% in the second quarter from a year ago to NIS 134 million as its U.S. prepared salads unit, Sabra, posted significantly better results and overseas coffee sales grew, the food and beverage company said yesterday. Sales rose 5.2% to NIS 1.9 billion, buoyed by a 6.3% rise in coffee and a 27% jump in sales at its Sabra joint venture with PepsiCo. Nevertheless, higher costs for production and the price of green coffee reduced net profit, excluding one-off items, to NIS 35 million from NIS 39 million a year earlier. A higher effective tax rate and weaker overseas currencies also ate into earnings, the company said. (Yoram Gabison )
NIS 250 million from 2008 Tnuva sale is finally distributed
The last NIS 250 million in proceeds from the 2008 sale of the Tnuva cooperative is being distributed to a group of kibbutzim and moshavim. After four years of lawsuits and other legal action, a trustee appointed to oversee the money set aside at the time of the sale will distribute the NIS 250 million to 50 of the collective settlements and other stakeholders in Tnuva who had claimed their rights were damaged by the sale. Tnuva was valued at just over $1 billion when it was sold to an investor group led by the British buyout fund Apax. In fact, the dispute isn't entirely over: Only 30 of the 50 have reached an agreement on compensation while the reminder may still appeal the terms. (Amiram Cohen )
Electra Consumer Products to close its chain of computer stores
Electra Computers, owned by Electra Consumer Products, is expected to shutter all of its retail stores in the near future following losses of more than NIS 10 million. Currently the only store open for business is at the Nokia Arena in Tel Aviv. Customers seeking repairs for products purchased at Electra Computers have been advised to contact the Electra repair facility at the Elco complex in Ramat Hasharon. Financial reports show that the computer retailer, which is part of Gershon Zelkind's Elco Holdings group, suffered a substantial drop in sales for the first quarter of this year. Electra Consumer Products also owns Shekem Electric, Machsanei Hashmal and Ace hardware stores. Amid the declining sales, Electra had weighed moving Electra Computer operations into Ace retail locations. It is not clear if that is still being considered. (Gabriela Davidovich-Weisberg )
Ormat Industries shows second-quarter loss after write-down
Geothermal energy producer Ormat Industries showed a NIS $1.6 million loss in the second quarter, falling back from a profit of $7.6 million a year earlier. The company reported yesterday that revenue grew to $129.8 million from $106.3 million, boosted by higher sales of electricity and of products, but Ormat took an $18 million charge on the decline in value of its North Brawley geothermal plant in California, which has not yet reached full output. The company said the write-down is due to the lower rate it will be getting for electricity generated by the plant - $95 a megawatt that it had been getting under previous agreements. (Yoram Gabison )
