Africa-Israel issues profit warning

Lev Leviev

Developments in the Russian economy pushed subsidiary AFI Development to a large fourth quarter loss.

Africa-Israel Investments Ltd. (TASE:AFIL), controlled by Lev Leviev, has published a profit warning this morning saying that the company expects to lose NIS 783-863 in 2014, mainly due to the profit warnings already issued by its Russian subsidiary AFI Development plc (LSE:AFID) and Africa-Israel Industries Ltd. (TASE: AFID).

In the fourth quarter alone, Africa-Israel Investments expects to record a loss of NIS 790-870 million.

In this morning's notification, the company explained that during the fourth quarter there had been negative macroeconomic developments in Russia and that these developments had extensive fallout on the models used to estimate the external value of AFI Development when assessing the value of its assets. Consequently, the Russian subsidiary recorded a quarterly loss of $300 million and an annual loss of $272 million.

Africa-Israel is expected to record an annual loss of NIS 59-69 million.

In morning trading Africa-Israel Investment's share price was down 7.8% on the Tel Aviv Stock Exchange (TASE).

Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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