Plasson increases its profit

Kibbutz Maagan Michael also benefited from the fine results.

While Plasson, owned by Kibbutz Maagan Michael, keeps its distance from the public eye, it deserves more attention. The company mainly manufactures fittings and valves for gas transportation pipes and communications lines, products for the poultry industry, and plastic sanitary products, and its results are excellent.

Plassons profit grew from NIS 24.6 million on NIS 388.3 million in revenue in 2001 to NIS 37.6 million on NIS 429.3 million in revenue in 2002.

The company made a NIS 67 million operating profit, compared with NIS 40.5 million in 2001. The good results are mostly attributable to a rise in the exchange rate. After all, NIS 369 million, or 86% of the companys sales, is for export. At the same time, the amount of raw materials and the number of manufacturing hours fell slightly. This may foreshadow the future trend, but company management stresses its satisfaction that the size of the market, the loyalty of its customers, and the market share of its products have not been affected, despite the recession and the difficult conditions prevailing in Israel and around the world.

In any case, the companys main production plant is located at Kibbutz Maagan Michael. Company manufacturing has three principal stages: injection, assembly, and packing. The production process for most of its products is automated and computerized. The main raw materials are imported polypropylene and polyethylene.

The Plasson groups other products are made by Rion, located in Kibbutz Cabri, of which Plasson owns 50%; Plasmor, located in Kibbutz Moran, also 50% owned by Plasson; and companies located in Italy, Germany, India, and Brazil.

Plassons 2002 cash flow was also excellent. Cash flow from current activities totaled NIS 72.5 million. After deducting NIS 19.4 million for investment and NIS 10.8 million for financing activities, NIS 42.2 million was left, increasing the company cash reserves to NIS 80 million.

Kibbutz Maagan Michael obviously also benefited from Plassons fine results. Payment for personnel services in 2002 amounted to NIS 40.9 million, and management fees totaled NIS 3.8 million. The kibbutz received NIS 4.5 million for use of its land, NIS 1.6 million for general services, and NIS 5.8 million in refunded expenses, making a total of NIS 56.6 million in payments to the kibbutz.

Published by Globes [online] - www.globes.co.il - on 28 April 2003

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