Israel’s Elscint Ltd., a subsidiary of Elbit Medical Imaging Ltd., has posted its financial results for the third quarter, which ended September 30, 2002. The company recently announced that it has signed an agreement with an unrelated third party for the sale of the manufacturing, assembly, engineering and integration operations, mainly for medical imaging equipment, of its sub-assemblies and components segment located at its Ma'alot facility in Northern Israel.
Upon consummation of the transaction, the activities of the company in the sub-assemblies and components segment in particular, and in the medical imaging area in general, will as a practical matter be discontinued.
Consolidated revenues for the third quarter of 2002 were 53.4 million new Israeli shekels ($11 million), as compared with NIS43.4 million reported in the parallel quarter last year. The increase in revenues is attributable to the hotel division, primarily due to the commencement of operations at the Victoria London Hotel and the Sherlock Holmes Hotel, also in London, as well as to an increase in the exchange rate of the Euro against the NIS during the three-month period ended September 30, 2002.
Gross profit for the third quarter of 2002 was NIS22.9 million ($4.7 million) as compared with NIS12.8 million in the corresponding quarter of 2001. This increase is primarily due to the increase in revenue from the hotel division.
Operating loss in the third quarter of 2002 was NIS4.6 million ($0.9 million) as compared with NIS1.7 million for the corresponding quarter of last year. The increase is derived mainly from an increase in general and administrative expenses, which resulted primarily from dividend payments of NIS3.4 million ($0.7 million) with respect to shares which are held by employees, and which are recorded as an expense in the statement of operation.
Net income from continuing operations for the third quarter of 2002 was nine million NIS ($1.8 million), or NIS0.54 ($0.11) per share, as compared with NIS17.9 million, or NIS1.07 per share, for the same quarter last year.
Net income from continuing operations is attributable mainly to net finance income, which totaled NIS14.6 million ($3.0 million) for the three month period ended September 30,2002 as compared with NIS28.2 million during the same period of the previous year. This finance income was derived primarily from devaluation (NIS against the US$) of 2.14 percent net of inflationary erosion of 0.65 percent in the three month period ended September 30, 2002, as compared with devaluation (NIS against the US$) of 4.56 percent net of inflationary erosion of 0.9 percent in the same period of the previous year.
Net income from discontinuing operations for the third quarter of 2002 was NIS0.3 ($0.07 million) as compared with NIS14.5 million for the same quarter last year mainly due to exchange rate fluctuations.
Elscint Limited generates revenues and earnings through two principal ventures: leisure and technology. It has interests in hotels in Western Europe, in hotel development projects principally in Western and Central Europe and in the commercial and entertainment center at Herzlia Marina. In the medical device sector, Elscint's Ma'alot facility in northern Israel manufactures medical and other components for customers engaged in various technology and medical device businesses. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
