ISRAEL: “Difficult” year for Delta Galil
Clothing producer Delta Galil Industries is continuing with its reorganisation plan after announcing net losses of US$36.3m in 2005.
Egytex News Desk
Egytex
The company announced net losses for the fourth quarter of US$7.6m, with revenues up 2% on the same period in 2004 to US$170.2m.
For the year, revenues rose 5% to US$684.5m, but excluding figures for Burlen – which was acquired in the fourth quarter of 2004 – they fell by 11%.
Delta Galil said the primary reason for its poor results was the erosion of selling prices to customers, particularly Marks & Spencer in the UK, and in the European markets.
Dov Lautman, chairman and chief executive, said: “The changes in the business environment were greater than we expected, as evidenced by the results issued today.
“We completed the closure of our production facilities in Honduras and in Canada, as outlined in the reorganisation plan that the company announced in the third quarter of 2005. We believe that the plan will be completed during the third quarter of 2006.”
Source: Just-style.com
From the Egytex news archive, first published on 16 March 2006. Figures and names are as reported at the time.
