Africa Israel’s losses widen
Real estate developer Africa Israel Investments posted a wider loss in the second quarter due to a decline in revenue at its mall in Russia and the impact of the euro’s weakness against the shekel.
On Thursday, the company announced that it had had a net loss of 179 million shekels ($45.6 million) in the quarter, compared with a loss of 66 million a year earlier. The company, controlled by billionaire diamond dealer Lev Leviev, said income from rent and operation of properties fell to 149 million shekels from 172 million. Africa Israel is the parent company of Russian real estate developer AFI Development. (Reuters)
Shapir Engineering reports higher 2nd quarter revenues but lower profits
Shapir Engineering and Industry has reported higher second quarter revenues but lower profits. The company, which has been involved in a number of major infrastructure projects in the country and is currently engaged in the initial stages of development of a new port in Haifa as well as an extension of the Route 6 toll road, is trading at a market cap of 2.4 billion shekels ($612 million).
Its 2nd quarter revenues were up by 4% to 552 million shekels, but its net profits were down by 13% to 41 million shekels. One factor cutting into profits was the company’s initial need to finance projects from its own resources. The company is projecting future revenues from the port project alone of 2.2 billion shekels. (Shelly Appelberg)
Osem’s Q2 profits down by 10%
Osem, the Israeli food manufacturer controlled by Nestle, reported a 10% drop in net profits for second quarter 2015, to 89 million shekels ($22.7 million).
The slump, which follows years of higher net and operating profits, was caused in part by a change in accounting practices and losses at its international sales division, products from which include Tivall vegetarian foods and its U.S.-based Tribe refrigerated food products. The division lost 1.7 million shekels in the second quarter on sales of 158 million shekels.
Osem’s overall operating profits for the quarter edged up by 0.4% to 126 million shekels. Quarterly revenues declined by 1.2% to 1.01 billion shekels, depressed by a legislative change that affects how sales promotional expenses are calculated. (Yoram Gabison)
Mylan shareholders back Perrigo takeover
Mylan shareholders on Friday backed the drugmaker’s hostile bid for Perrigo, allowing Mylan to launch a tender offer for Perrigo’s shares in the next few weeks. Mylan said that it had the support from investors representing a majority of shares, passing the threshold it needed to go directly to Perrigo shareholders.
Mylan, a generic drugmaker, offered to buy Perrigo in April for cash and stock then worth $205 per share. Perrigo, which has been listed on the Tel Aviv Stock Exchange since its acquisition of Israeli drug maker Agis a decade ago, has consistently rejected the offer as too low and says that it would do better on its own. Israeli-based Teva Pharmaceutical Industries had been pursuing Mylan but walked away to buy Allergan’s generic business. (Reuters)
TASE opens higher, steading after last week
Following the wild ride that the stock market took last week, the Tel Aviv Stock Exchange opened the week higher on Sunday, with significant gains that sputtered as the day wore on. The benchmark Tel Aviv-25 ended up 0.53%, closing at 1,605.09 points. For the year, it is still up 9%. The Tel Aviv-100 index rose by 0.67% to 1,407.73 points on the day, and is up 8.5 % on the year. Sunday’s trading volume was 534 million shekels ($136 million).
Eliezer Fishman’s Jerusalem Economy real estate firm surged by more than 22% on news that Bank Leumi’s secured 40% stake in the company was being sold to a company controlled by the Nakash brothers of the Jordache jeans brand. (Shelly Appelberg)
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