Water and gas valve manufacturer Ham-Let (Israel-Canada) Ltd. (TASE: HAML) has shut down a production line in Japan and published a profit warning for the fourth quarter of 2008.
Ham-Let Motoyama Japan Ltd. employs 50 people at its factory. Ham-Let cited the severe economic crisis in Japan as the reason for closing down the production line. Ham-Let Motoyama's customers are mostly domestic semiconductor companies, which have been hard hit by the recession. Ham-Let said that it will focus production at its Israeli factory.
Ham-Let estimates that it will report a $10 million net loss for the fourth quarter and a net loss of $6 million for the year as a whole, mainly due to the reduction in value of assets of Ham-Let Motoyama. Ham-Let expects to report an additional expense of $2 million in the first quarter of 2009 because of the closing of the Japanese production line.
Ham-Let chairman and CEO Shmuel Topaz said, "Ham-Let has been forced to pay the price of the worst crisis ever in the Japanese economy. The quick and sharp adjustment that Ham-Let has made in production in view of the crisis in Japan will lead to new opportunities in the future."
Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Discount Investment Corporation (TASE: DISI) owns 46.3% of Ham-Let. Ham-Let's share fell 8.8% by midday today to NIS 7.50, while Discount Investment's share rose 0.2% to NIS 33.19.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2009
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