The net profit of the Clal concern amounted in the first half of 1999 to NIS 390.4 million, up 70% compared to profit in the first half of 1998. In Q2 1999, the concern’s profits posted a 43% decrease to NIS 67 million compared to a profit in the second quarter of 1998.
Profit for the corresponding quarter last year included the share of Clal Israel in the gain on the sale of ECI Telecom shares to Koor for NIS 105 million. However, in the first half of 1999, profit was sharply affected by net capital gains of NIS 149 million following the sale of shares in Clal Insurance Holdings to Bank Hapoalim. Q1 profit was also affected by the sale of another 5% of the shares of ECI Telecom for NIS 188 million, and from a decrease in the share-holding following the merger with Tadiran Telecommunications.
The results of the Clal concern in the first half of 1999 were affected by the sharp improvement in the results of insurance business activity. The net profit of Clal Insurance amounted in the first half to NIS 163 million, compared to NIS 69 million in the corresponding period last year.
In the first half, Clal reached break-even point in its activity in the capital market sector compared to a NIS 3 million profit in the corresponding period last year. In Q2 1999, this activity amounted to a NIS 1 million loss, compared to an NIS 1 million profit in Q2 1998.
The Clal board reported, in its financial statements, that in March 1999, it had approved an investment of up to NIS 10 million through Ilanot Batucha, for the purpose of setting up the "Orma" investment bank in the United States. This bank will specialise in private placements for US investors in the framework of capital raising exercises for Israeli high-tech companies.
Other activities in which Clal is involved posted the following Q2 1999 results:
The net profit of the Nesher cement factory amounted to NIS 40 million, similar to the corresponding quarter last year. The loss in Barak was reduced to NIS 40 million compared to NIS 51 million in the corresponding quarter last year, while quarterly revenues increased to NIS 96 million, compared to NIS 60 million in the corresponding quarter last year. Polgat posted a net profit of NIS 8 million, compared to a loss of NIS 9 million in the corresponding quarter last year. The net profit of Hadera Paper Mills was also up to NIS 18.5 million this quarter, compared to NIS 13.4 million in the corresponding quarter last year.
The cash balances in the amount of the cash in general business at the end of June 1999 amount to NIS 431 million, compared to NIS 610 million at the end of 1998. In line with the dividend policy established by the company in 1998, Clal announced, in May 1999, the distribution of a NIS 160 million interim dividend, paid to shareholders in June 1999.
Published by Israel's Business Arena August 22, 1999