Dead Sea Works Ld - 3rd Quarter & 9 Mths Results

RNS No 5019e
DEAD SEA WORKS LIMITED
17th November 1997

 
 
                DEAD   SEA  WORKS LTD
 
          Results for third quarter 1997
 
The  following are the financial results  for  Dead
Sea   Works  Ltd.  to  30  September  1997   on   a
consolidated basis.
 
The consolidated reports include primarily Dead Sea
Magnesium  Ltd.  and the company's share  (50%)  in
Clearon Corp.
 
The company's Board of Directors, in its meeting of
October  9, 1997, appointed Mr. Shaul Ben-Ze'ev  to
the position of company President as of November 2,
1997.  Mr Ben-Ze'ev's previous position in the  ICL
Group  was President of Clearon Corp. in the United
States.
 
The consolidated net income of the company for this
quarter  was  $13.7  million,  compared  to   $10.9
million for the same quarter last year (an increase
of  26%). (Consolidated net income for this quarter
included net loss of $0.2 million from consolidated
subsidiaries compared to net income of $0.6 million
for the same quarter last year).
 
The  consolidated operating income of  the  company
for  this  quarter  was $22.4 million  compared  to
$21.2  for the same quarter last year (an  increase
of  6%).  (Consolidated operating income  for  this
quarter  included an operating loss of $0.4 million
from   consolidated   subsidiaries   compared    to
operating  income  of  $1.7 million  for  the  same
quarter last year)
 
Potash  sales  remained high in the third  quarter.
The main shipment destinations were India and South
America.  Despite the increase in sales quantities,
potash  prices remained at the same levels  as  for
the  earlier quarters of 1997. Compared to the same
quarter last year potash prices declined by 8%.
 
Run-in of certain parts of the new magnesium  plant
concluded  at  the  end of the third  quarter,  and
these  were  put  on  a regular  production  basis.
During   the  run-in  period  Dead  Sea   Magnesium
capitalised  all  production  costs  net  of  sales
revenues  ($9.9 million for the quarter  and  $19.4
million  for  the nine months ended  September  30,
1997), and financing expenses ($3.7 million for the
quarter and $9.2 million for the nine months  ended
September 30, 1997).
 
During  the quarter, due to a technical event,  the
system  for  the  treatment  of  chlorine  in   the
magnesium plant was shut down for one month.  As  a
result  there were delays in introducing additional
electrolysis  cells into the production process.
 
Also,  expenses  were  incurred  due  to  loss   of
chlorine   sales  and  from  additional  costs   in
neutralizing the chlorine and repairing the damage.
The  company  submitted a claim  to  the  insurance
companies insuring the plant for indemnification of
damages.
                         
 
Consolidated results
($U.S. millions)
                         

         1 - 9/97  1 - 9/96    7 - 9/97  7 - 9/97
            
Net                                        
turnover    343.2     257.4     123.7      88.2
 
Profit                                     
before tax   60.9      48.3      21.8       17.6
                                           
Tax on                                     
income      (24.3)    (18.1)    (8.3)      (7.0)
 
Net profit                                 
            36.9      30.5      13.7       10.9
Number of                                  
shares      285.8     285.8     285.8      285.8
(millions)
 
EPS ($)                                    
             0.13      0.11      0.05       0.04
                         
 
END 

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