Hadera Paper Ltd. (AMEX: AIP; TASE: AIP) (formerly American Israeli Paper Mills) today published its consolidated financial report for the second quarter and first half of 2008. The company posted a net profit of NIS 39.3 million (NIS 7.77 per share) for the first half, compared with NIS 6.3 million for the first half of 2007. Net profit rose to NIS 18 million for the second quarter, up 76.5% on the NIS 10.2 million for the corresponding quarter of last year.
The company attributed the growth in profit to higher profits by its Israeli operations and a sharp reduction in its share in the losses of its company in Turkey.
Operating profit rose to NIS 111.3 million for the first half, up 57.4% on the first half of last year.
Hadera Paper posted consolidated revenue of NIS 1.62 billion for the first half, up 8.4% on the NIS 1.49 billion for the corresponding half. Revenue totaled NIS 771 million for the second quarter, up 4.2% on the corresponding quarter.
Hadera Paper chairman Zvika Livnat said, "During the first half of 2008, the company made progress on its three strategic projects: expansion of its carton packaging production line, penetration of Kimberly Clark products in Turkey, and investment in the natural gas-driven power plant. These investments will be the group's growth engines in the coming years."
On July 16, Hadera Paper completed an offering of two bond issues in Israel, raising NIS 306.6 million altogether.
Today, Hadera Paper also announced that it had obtained approval from the Antitrust Authority for its acquisition of Carmel Container Systems Ltd. The deal to buy the company from Kraft Group Inc., the primary shareholder, and other shareholders for $20.8 million was signed on July 10. If the deal is closed, Hadera Paper will boost its stake in Carmel Container to 89.3% from 38%, and Carmel Container's financials will be included in Hadera Paper's consolidated reports. Hadera Paper is financing the deal from its own resources.
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2008
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