Sources inform ''Globes'' that the holding company of Japanauto Israel Automobile Co. Ltd. is planning to raise NIS 60-70 million via a bond issue on the Tel Aviv Stock Exchange (TASE). The company that owns Japanauto, not Japanauto itself, will apparently hold the bond issue. However, Japanauto will probably put a lien on part of its cash flow for the repayment of the bonds. Japanauto is Israel’s sole Subaru (TSE:9632) importer.
The sources added that Japanauto posted NIS 312.3 million in revenue in the first half of 2005, after posting NIS 620 million in 2004 as a whole. Japanauto’s profits provide better news, improving significantly compared with 2004. Its operating profit was NIS 16.2 million for the first half of 2004, compared with NIS 19 million for 2004 as a whole; its pre-tax profit was NIS 13.4 million for the first half of 2004, compared with NIS 10.4 million for 2004 as a whole; and its net profit was NIS 8.7 million for the first half of 2004, the same as for 2004 as a whole.
Japanauto’s balance sheet total, including shareholders’ equity, was NIS 32 million at the end of June 2005, compared with 23.2 million at the end of 2004, and NIS 16.5 million at the end of 2003. Its current assets totaled NIS 171.4 million at the end of June 2005, and its current liabilities totaled NIS 197 million.
“Globes” has obtained additional figures on revenue from the sale of spare parts and from the main Subaru garage in Israel. Sales of spare parts to external customers totaled NIS 29.3 million for the first half of the year, and are expected to reach NIS 60 million for the year, compared with NIS 59 million in 2004.
Japanauto says competition in the spare parts market is fierce, and that sales of Subaru-brand spare parts compete against alternative spare parts, parts from dismantled vehicles and refurbished parts. The company nevertheless believes that its spare parts sales will remain stable, despite rising competition, and could even increase as the vehicle market grows.
Published by Globes [online], Israel business news - www.globes.co.il - on October 6, 2005