Dead Sea Works Ld - 2nd Quarter & Interim Results

RNS No 6550u
DEAD SEA WORKS LTD
13th August 1998
 

Results for second quarter 1998
 
Following are the financial results of Dead Sea Works Ltd to 30 June 1998 on a 
consolidated basis. 
 
The consolidated reports include primarily Dead Sea Magnesium Ltd. And the 
companys share (50%) in Clearon Corp.
 
Net income for this quarter was $16.0 million, compared to $12.0 million for the
same quarter last year (a increase of 33%). The consolidated operating income of
the  company  for this quarter was $25.5 million compared to $23.1 for the same
quarter last year (an increase of 11%).
 
The major factor in the increase of net income over previous quarters was a rise
in potash prices and an increase in the volume of potash sold from inventory
accumulated in the past. The current level of potash inventory in the company
is the amount necessary for optimal operation of the customer delivery system,
so that the company does not expect that sales volumes in the upcoming
quarters will be greater than the amounts produced.
 
The Board of Directors of Dead Sea Works Ltd. Approved on 27 April 1998 
investments of $80 million to increase potash production by 300 thousand tons
a year.
 
After the Balance Sheet date a consortium in which the company has approximately
a 60% share was successfull in its bidding for the purchase of Groupo Potasas
from the Spanish  Government.  The approximate remaining 40% of the consortium
is equally divided between two Spanish companies. Groupo Potasas produces over
one million tons of porash per year from three mines north of Barcelona. 
 
The magnesium metal production rate stands at the planned production level for 
the first phase 25,000 tons per annum.  During the first quarter an investment
of $47 million was approved for 'de-bottlenecking' the production process at
the magnesium  plant and to raise the total production capacity to 35,000 tons
per annum. This investment  will be completed during 1999
 
 
 
  
                           Consolidated results
                            ($ U.S. millions)
 
 
                      1 - 6/98        1 - 6/97        4 - 6/98      4 - 6/97

Net turnover           252.4           219.4            138.3        117.9

Profit before tax       35.3            39.0             22.2         21.1

Tax on income          (14.6)          (16.1)            (8.9)        (9.2)

Net profit              25.4            23.2             16.0         12.0

Number of              297.2           297.2            297.2        297.2
shares (millions)

EPS ($)                 0.09            0.08             0.05         0.04



END

QRSBRGBIDGBCCIX