Sources inform ''Globes'' that heavy losses in recent quarters by ballistic armor maker Rabintex Industries Ltd. (TASE: RABN) has forced the company to undertake a series of streamlining measures, including instituting a short workweek at the company's Beit She'an factory over the coming months.
The core business of Rabintex, controlled by Aviram Wertheim's Inspire Investment Ltd. (TASE:INSP), is the manufacture of ballistic armor kits for vehicles through Rabintex's US subsidiary Burtek Inc.. Burtek was responsible for 76% of the company's revenue in 2009.
Rabintex also manufactures personal armor, helmets, and armor kits at the Beit She'an factory. The company's revenue from personal armor was NIS 103 million in 2009, and it posted an operating loss of NIS 10.3 million.
At the end of March, Rabintex's orders backlog for personal armor was NIS 79 million. During the first quarter, Burtek also saw a sharp drop in sales, resulting in Rabintex posting a loss of NIS 9.5 million, compared with a profit of NIS 2.7 million in the corresponding quarter of 2009.
Rabintex said, "The measures being undertaken by the company to improve efficiency and cut costs include having employees with a large amount of vacation time taking their accumulated vacation days during the upcoming summer months."
Rabintex's share price fell 2.5% today to NIS 1.19, giving a market cap of NIS 47 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010