High quality engineered quartz surface maker Caesarstone Sdot Yam Ltd. (Nasdaq: CSTE) today reported double-digit revenue and profit growth for the third quarter of 2013, and will distribute a one-time $20 million dividend.
The company also raised its revenue guidance for the full year of 2013 to a new range of $343 to $348 million, up from its prior range of $330 million to $340 million.
Revenue rose 21.6% to $94.3 million for the third quarter from $77.6 million for the corresponding quarter of 2012. Growth was driven by North American sales: US sales were up 47.8% over the corresponding quarter and Canadian sales were up 22.2%. Net profit rose to $16.1 million ($0.46 per share) for the third quarter from $12.4 million for the corresponding quarter.
Caesarstone had $104.9 million in cash and bank deposits at the end of September, $32.2 million more than at the end of 2012, due in part to $47.4 million in cash from operations during this period.
In November, Caesarstone began utilizing the expanded capacity at its Bar Lev plant in Israel. The plant's fifth production line will open in the second quarter of 2014. It also announced today that it has selected Richmond Hill, Georgia, as the location for its new manufacturing plant in the US. The company pushed back the start date for the first of two lines to the second quarter of 2015, and has decided to accelerate its initial investment to 70% of the total capital cost of $100 million in order to support an expedited launch of the second line. Upon completion, the company will have seven full production lines.
Caesarstone CEO Yosef Shiran predicts further growth, saying, "We are pleased with our results for the third quarter, particularly in the US, which is our largest and fastest growing market."
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2013
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