Dead Sea Works Ld - 2nd Quarter Results

RNS No 7878a
DEAD SEA WORKS LIMITED
1 September 1999


DEAD SEA WORKS LTD
(the "company")

Results for second quarter 1999

Following are the financial results of Dead Sea Works Ltd to 30 June 1999 on a
consolidated basis. 

The consolidated reports include primarily Dead Sea Magnesium Ltd., Iberpotash
S.A., and the company's share (50%) in Clearon Corp. This is the first year in
which Iberpotash S.A. is included in the income statement.

The company decided to examine various possibilities for separating its
magnesium metal operations from the Company. Examination of these
possibilities have not yet been completed. Subsequent to the  balance Sheet
date, Dead Sea Magnesium Ltd. completed preparing, together with an external
consultant hired for this purpose, a Business Plan.

Also, the Company assessed the fair value of its magnesium metal plant assets
through an independent valuator. Fair value was based upon discounted cash
flows of the magnesium metal plant.

As a result of this assessment, the fair value of the magnesium metal plant
assets was estimated to be less than book value, such that the Company
included a provision for a write-down of magnesium metal plant assets in
"other income (expenses), net" amounting to $46.5 million, thereby decreasing
net income by $22.7 million, after taking into consideration effects on tax on
income and the minority interest.

On 1 March 1999 the Company's Board of Directors approved the decision that
the Company sell its share of Clearon Ltd. to an associated company. On 30
July this sale was completed. The amount received totaled  $17.7 million. The
excess of the amount received over book value of the investment was $1.1
million as of the Balance Sheet date, and will be credited to capital
reserves.
  
The net income for this quarter was $2.2 million, including the provision for
the write-down of the magnesium metal plant assets. Without the one-time
write-down provision, net income for the quarter was $24.9 million. This
compares to net income of $16.0 million for the equivalent quarter last year.
The operating income for the quarter was $34.7 million, compared to $25.5
million for the same quarter last year. 

During the quarter the Company signed a compromise agreement with the Israel
Ports Authority over the leasing of port facilities over the period 1988 to
1998. The excess of previously made provisions over the actual payment,
amounting to $9.3 million, was included in other income.

On 19 May 1999 dividends amounting to $29.5 million were distributed for the
Company's 1998 profits. On 21 July 1999 it was decided to distribute a
dividend amounting to $90.5 million, with an ex date dividend of 22 August
1999 and payment date of 6 September 1999.  

Consolidated Results
($ U.S. millions)

                       1-6/99         1-6/98         4-6/99         4-6/98

Net turnover            316.4          252.4          150.1          138.3

Profit before tax         9.6           35.3           (9.0)          22.2

Tax on Income            (9.5)         (14.6)          (2.2)          (8.9)

Net profit               15.4           25.4            2.2           16.0

Number of 
shares (millions)       297.2          297.2          297.2          297.2

EPS ($)                  0.05           0.09           0.01           0.05   



Financial Statements for the period to 30 June 1999 will be posted to
shareholders.


END

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