Ampal-American Israel Corporation (NASDAQ:AMPL) reported net income for the three months ended March 31, 2000 of $1,162,000, equal to $.06 per Class A share (basic) and $.05 per Class A share (diluted), as compared to net income of $5,552,000, equal to $.23 per Class A share (basic) and $.20 per Class A share (diluted) for the three months ended March 31, 1999. The 1999 results include a loss from discontinued operations of $425,000, equal to $.02 per Class A share (basic and diluted). Revenues for the three months ended March 31, 2000 were $10,755,000, as compared to $13,854,000 for the same period in 1999.
The decrease in net income is primarily attributable to lower unrealized gains on investments, a loss from impairment of the Company's investment in M.D.F. Industries Ltd., which continues to experience operational problems in 2000, and a translation loss in 2000 as compared to a translation gain in 1999. These decreases were partially offset by the increase in equity in earnings of affiliates as a result of increased earnings of the Company's 50%-owned affiliate, Trinet Venture Capital, which recorded unrealized gains on its investments, and the absence of losses from Moriah Hotels in the first quarter of 2000, since the Company sold its investment in Moriah in April, 1999.
Total assets at March 31, 2000 were $439,072,000, as compared to $396,780,000 at December 31, 1999. Shareholders' equity at March 31, 2000 was $177,110,000, as compared to $156,834,000 at December 31, 1999.
Ampal and its subsidiaries primarily acquire interests in businesses located in the State of Israel or that are Israel-related. Ampal's primary investment focus is the growing high-technology and communications sector. Ampal has diversified interests in the following sectors: high-technology and communications, real estate, capital markets, leisure-time, energy distribution, and industry.
Published by Israel's Business Arena on May 15, 2000.