The group’s revenues declined 21% to NIS 711 million. Aside from Electra, which showed improvement, both profits and revenues were eroded.
After having captured a place of honor among Israel’s fast-growth companies n 1995, Elco Holdings has begun 1997 on a significant pull-back in its financial results. Elco, which in 1995 put a number of millions into owner Gershon Salkind’s pocket, mostly a direct result of profits, posted a 60% drop in Q1 ’97 profits. Elco Holdings ended Q1 ’97 on NIS 9.4 million in profits, compared with NIS 23.8 million in Q1 ’96, while three of its four companies recorded significant drops in revenues and profits.
The slowdown is evinced by a quick glance at Elco Holding’s revenues, which ended on NIS 711.5 million, or 21% lower than Q1 ’96 revenues which were NIS 895.2 million.
Elco Holdings’s results directly express operations of the group’s four divisions: Elco Industries, Electra Consumer Products, Shekem and Electra Israel. The good news: Electra Israel posted profits of NIS 7.7 million, compared with NIS 7 million in Q1 ’96, stemming from a rise in revenues, which were NIS 195.1 million compared with NIS 186.2 million in Q1 ’96.
But other of the group’s companies did not manage to imitate Electra Israel’s success, and give the impression of being in a slump.