Delta Galil posts 11% rise in 2nd-quarter net
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Delta Galil Industries, the maker of undergarments and other apparel, said Monday that net profit attributable to shareholders rose 11% from a year ago to $9.7 million in the second quarter, as sales climbed 6% to $249.2 million, capping 19 straight quarters of organic sales growth. It said operating income was $15.5 million for the second quarter, up 11% from the same time in 2013. “We are well on the way to our first $1 billion sales year, and in fact have already reached that milestone during the four quarters ended June 30, 2014,” CEO Isaac Dabah said. Apart from sales reaching between $1.05 billion and $1.08 billion for all of 2014, Delta confirmed that it expects full-year 2014 diluted earnings to come out at $1.95-$2.14 a share. Delta shares closed down 1%, at 101.90 shekels ($29.70) in Tel Aviv.
Ceragon plunges on plan to sell shares
Ceragon Networks plunged in New York trading Monday after the maker of systems for mobile phone and Internet providers said it would need to issue new shares to raise capital to cover losses it posted in the first half. The company reported that its non-GAAP net loss for the second quarter reached $5 million, in addition to a $12.9 million loss for the first quarter. It said revenues for the second quarter were virtually unchanged from the first at $90.4 million, although up 28% from a year ago. “We believe the second half of 2014 will mark the beginning of a sustainable uptrend in revenues, followed by a return to profitability with substantial operating leverage, based on a lower expense profile from the recent restructuring,” CEO Ira Palti said. Ceragon shares were down 14.5% at $2.06 in New York in mid-afternoon.
Tel Aviv shares mixed on lower Wall Street
Tel Aviv shares ended mixed Monday, undercut by a lower Wall Street and disappointing U.S. economic data. The benchmark TA-25, which had been trending higher in the afternoon, took a sudden dip to end the day up just 0.03% at 1,395.89 points. The TA-100, meanwhile, edged down 0.06% to 1,251.72. Turnover was nearly 958 million shekels ($280 million). Bezeq rose 1.4% to close on 6.36 shekels and parent company B Communications advanced 2.3% to 63.79, but Partner Communications dropped 2.2% to 25.92. The TA-100 index was paced by gains for two biotech companies – Kamada, which rose 3.7% to a close of 23.10 shekels; and Clal Biotechnologies’ 2.9% advance to 8.95 shekels. Israel Discount Bank added 1.8% to end on 5.89 shekels after it unveiled cost-cutting plans Sunday.