A target=new href=http://www.deltagalil.com>Delta Galil Industries Ltd. (Pink Sheets: DELTY ; TASE: DELT) published its financial report for the third quarter of 2008 today. The clothing and fabrics maker posted $167.7 million sales for the quarter, down 2.7% from the $172.4 million in the corresponding quarter in 2007.
The decline in sales resulted from a 35.2% fall in UK sales, principally to Marks & Spencer, which was partially offset by a 9.5% increase in sales in the US and Europe and a 16.2% increase in sales in Israel. Operating profit was $8.5 million, unchanged from the corresponding quarter last year.
Delta recorded a net loss $4.5 million ($0.24 per share) for the quarter, compared with a net profit of $3.3 million ($0.18 per share) in the corresponding quarter. The company's third quarter results were affected principally by the change in business with its core customer, as a result of both the winding up of unprofitable lines of business, and weaker sales. Delta's sales to the customer for the 2008 as a whole are likely to narrow to $75 million from $134 million in 2007.
Delta said it would be taking additional measures in order to reduce its costs, including the relocation of its product development from Israel and the UK to Egypt, and the closing down of its bra development center in Mansfield. The company will also downsize its London office. In the course of its cost cutting measures the company expects about 100 employees will be laid off in the UK and Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2008
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