Textiles company Tefron Ltd. (Bulletin Board: TFRFF; TASE:TFR) is showing signs of improvement. Although second quarter revenue fell, the company reduced its net loss, thanks to its streamlining plan formulated jointly with its creditor banks.
Tefron posted earnings before interest, taxes, depreciation and amortization (EBITDA) of $12,000 compared for the second quarter with a negative EBITDA of $3.3 million for the corresponding quarter of 2009. One of the conditions of the company's debt settlement with the banks was a positive EBITDA for 2010. As Tefron doubted that it will achieve this target, it was able to amend this condition to an EBITDA loss of no more than $2.1 million for the year.
Tefron operates in three textiles sectors: seamless cloth, regular textiles, and swimwear.
Revenue fell 1.2% to $24.9 million for the second quarter from $25.3 million, and fell 4.9% compared with the preceding quarter. The company nevertheless reduced its net loss to $2 million for the second quarter from $4.6 million for the corresponding quarter.
Tefron's share opened in New York at $1.50. The share price jumped 15.1% on the TASE to NIS 7.30, giving a market cap of NIS 24 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010