Ahead of its transfer from Fishman Holdings to Warburg Pincus & Co. Equity Fund, Alliance Tire Co. (TASE: ALIN) today published its financial report for the third quarter of 2006.
The company's revenue for the third quarter rose 7% to $38.5 million. Sales in January-September totaled $117.4 million, 2.5% more than the corresponding period, with the European market accounting for more than half of its sales.
Following the rise in raw material costs, Alliance Tire attempted to raise the prices of finished products. However its gross profit for the quarter only grew by 3%.
Operating profit was $574,000, 29% less than the preceding quarter and its bottom line shows a loss of $1.1 million. The changeover to losses has brought current cashflow to $1.1 million, down from $4.8 million in the corresponding quarter, mainly because the company made a $2.1 million profit, most of which was $1.3 million revenue from financing.
The report also indicates that financing expenses in January-September amounted to $17 million, with $9.4 million stemming from a net loss on a currency transaction which Eliezer Fishman made on the Turkish lira. The report indicated that Fishman had provided shares of other companies valued at $11.2 million as collateral for the debt, and that he had undertaken to transfer the amount of the loss by early July 2007.
Fishman is the controlling shareholder in "Globes".
Published by Globes [online], Israel business news - www.globes.co.il - on November 28, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006