Biz Briefs: TA-25 Index Slips Below 1,400 for First Time in Three Months

Elbit Systems profit dropped in first quarter; Perrigo shares gain despite quarterly loss being revised higher.

AP

Perrigo shares gain despite quarterly loss being revised higher

Perrigo revised its first-quarter financial report Tuesday to show a much bigger loss than originally reported, but its share price rallied anyhow. The U.S. company, which is traded on the Tel Aviv Stock Exchange and has operations in Israel, said its first-quarter net loss was $335 million, or $2.34 a share, including noncash intangible and goodwill impairment charges, after an income tax benefit. Perrigo previously said its was $226.1 million down. Less than a week earlier, Perrigo had reported that the loss was just $133 million, or 93 cents a share. Despite that, the company said the guidance it offered last Thursday for full-year 2016 was unchanged and that it expected to earn between $8.20 and $8.60 a share, an increase of 8% to 13% over 2015. The revision marks another embarrassment for Perrigo after its CEO, Joseph Papa, quit last month to join Valeant Pharmaceuticals and the company was forced to downgrade its earnings outlook for the year. Perrigo shares were up 2.3% at $90.74 late morning local time in New York. (Yoram Gabison)

Elbit Systems profit dropped in first quarter

Elbit Systems on Tuesday reported a decline in quarterly net profit, despite a rise in sales and lower financial expenses. Israel’s largest publicly traded defense company said its adjusted net income reached $51.2 million, or $1.20 per diluted share, in the first quarter, down from $52.6 million, or $1.23, a year earlier. While overall revenue edged up just 2% to $721.2 million, sales to Asia rose 22% to $213 million, making the region Elibit’s biggest market. Elbit’s order backlog at the end of March reached $6.8 billion, up from $6.3 billion a year earlier. “The ongoing growth in the backlog, coupled with an improving environment for defense spending throughout the world, positions us well to continue our long-term growth for the foreseeable future,” said CEO Bezhalel Machlis. Elbit declared a dividend of 40 cents a share for the first quarter, unchanged from the fourth quarter. Elbit shares finished 1.9% lower at 347.90 shekels ($91.16). (Yoram Gabison)

Effort to end tensions between top two bourse executives fails

A management crisis at the Tel Aviv Stock Exchange appeared to take a turn for the worse on Tuesday after an emergency meeting of the board aimed at resolving tensions between its CEO and chairman was called off at the last minute. Months of acrimony surfaced in March after Chairman Amnon Neubach launched a drive with other directors to oust CEO Yossi Beinart amid concerns that efforts to stem the exodus of listed companies and declining trading volume were failing. Shortly afterwards the bourse issued a statement saying the crisis was resolved, but apparently it has continued and last Thursday, the board called for a meeting on the crisis for 10 A.M. Tuesday, but without explanation. “Beinart claims that Neubach is interfering too much while Neubach says he has no choice but to interfere because the CEO is doing his job,” said one bourse source, who asked not to be identified. All those involved declined to comment. (Shelly Appelberg)

TA-25 index slips below 1,400 for first time in three months

The Tel Aviv Stock Exchange’s TA-25 index slipped below the 1,000 points mark for the first time in more than three months on Tuesday in another day of mixed trading. The benchmark index edged down 0.1% to end at 1,399.73 points, while the TA-100 posted a razor-thin 0.05% rise to 1,211.86, as 1.17 billion shekels ($310 million) in shares changed hands. Drugs stocks rallied, led by a 2.8% advance for volume leader Teva Pharmaceuticals to 195.50 shekels. SodaStream led TA-100 stocks higher on a 5.1% gain to 74.90, while TowerJazz added 1.7% to close at 44 shekels after it said it began commercial production of a chip with Internet of Things applications. Shares of Excellence soared more than 31% to 59.60 after its parent company, Phoenix, said it was offering to buy shares from the public at about 60.21 shekels a share. Communications stocks were lower, with Bezeq down 1.1% at 7.69 and Partner Communications losing 1.5% to 20.19. (Uri Tomer)