Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) today published a profit warning, shortly after its Russian development arm, AFI Development plc (LSE:AFID), published its financial report for the second quarter of 2009. In a notice to the TASE, Africa-Israel says that it will report a loss of NIS 1.4 billion for the second quarter.
Africa-Israel attributes the loss to the reduction in valuation of its investment properties, housing inventory, and land assets in the US that the company will make in its financial report for the second quarter. The value of some of the housing inventory in certain markets is less than the value listed in the company's books.
Africa-Israel also expects to record high financing expenses for the second quarter because of the rise in the Israeli Consumer Price Index (CPI) during the quarter.
Africa-Israel estimates the second quarter loss attributable to its capital rights holders at NIS 750 million.
Trading in Africa-Israel's was suspended at the opening, and has not yet resumed. The share's closing price yesterday was NIS 71. Orders for the share indicate that it could fall as much as 15% when trading resumes.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009