IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) today published its consolidated financial report for the second quarter of 2009, and also announced more capital gains from sales of Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) shares for the third quarter.
Gains from Credit Suisse share sales more than offset poor results from Koor's main subsidiary, Makhteshim Agan Industries Ltd. (TASE: MAIN), in which it owns 42%.
Koor posted a net profit of NIS 1.37 billion (NIS 28.89 per share) for the second quarter, compared with a net loss of NIS 119.8 million for the corresponding quarter of 2008. Only NIS 3 million of the profit came from the company's holding in Makhteshim Agan, compared with NIS 94 million for the corresponding quarter. Makhteshim Again's net profit fell 97.5% to $2 million for the second quarter from $69 million for the corresponding quarter.
Koor lost NIS 20 million from all its holdings, Credit Suisse excepted, for the second quarter, compared with a profit of NIS 69 million for the corresponding quarter.
Koor posted NIS 34.9 million revenue for the second quarter, down 41% from NIS 58.6 million for the corresponding quarter. However, the company reported capital gains and dividends of NIS 1.61 billion for the second quarter, compared with zero for this item, which basically means capital gains from the sale of Credit Suisse shares, in the corresponding quarter.
Koor had NIS 3.09 billion in cash and cash equivalents at the end of June, up from NIS 1.89 billion a year earlier. The company owes Citigroup Inc. (NYSE: C) and Morgan Stanley (NYSE: MS) $220 million for their loans to the company to buy shares in Credit Suisse
In a separate announcement today, Koor announced that it will record an additional capital gain of NIS 134 million for the third quarter on the latest sales of Credit Suisse shares. Koor has already announced NIS 171 million in capital gains for the third quarter. Koor currently owns 2% of Credit Suisse, worth NIS 3.81 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2009
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