Dead Sea Works Ld - 3rd Quarter Results, etc.

RNS Number:9272B
Dead Sea Works Ld
3 December 1999


DEAD SEA WORKS LTD
(the "Company")

Results for second quarter 1999 - Revised

Following are the revised financial results of Dead Sea Works Ltd to 30th 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.

In the previous reports that the Company prepared for the end of June 1999,
the Company included a provision for the valuation of the assets in the
Magnesium company of U.S.$ 46.5 million, based on an estimate of the real
value of these assets. The Israeli Securities Commission did not accept the
inclusion of this provision and required the submission of revised reports.
The effect on net income, after tax expense and minority interest are
accounted for, is U.S.$ 22.7 million.

On 1st 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 30th
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 revised net income for this quarter was $24.8 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 19th May 1999 dividends amounting to $29.5 million were distributed for the
Company's 1998 profits. On 21st July 1999 it was decided to distribute a
dividend amounting to $90.5 million, with an ex date dividend of 22nd August
1999 and payment date of 6th 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

Income before tax             56.1           35.3          37.5          22.2

Tax on Income                (21.2)         (14.6)        (13.8)         (8.9)

Net income                    38.1           25.4          24.8          16.0

Number of 
shares (millions)            297.2          297.2         297.2         297.2

EPS ($)                       0.13           0.09          0.08          0.05 
 

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


DEAD SEA WORKS LTD
(the "Company")

Results for third quarter 1999

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

The consolidated reports include primarily Dead Sea Magnesium Ltd., and
Iberpotash S.A. This is the first year in which Iberpotash S.A. is
consolidated in the income statement.

The financial reports previously publicized for the period ended of June 1999
included a provision for the valuation of the assets in the Magnesium plant.
The Israeli Securities Commission, in a letter to the Company dated 25th
November 1999, rejected the inclusion of this provision and required the
Company to revise its Financial Reports for 30th June 1999. 

After the balance sheet date, on 28th October 1999, shareholders' loans were
extended to the Dead Sea Magnesium Ltd, by the Company and by Volkswagen AG,
the minority shareholder, of U.S. $65 million and U.S. $35 million
respectively.

After the balance sheet date the Company approved an agreement with the parent
company, Israel Chemical Limited (ICL) to sell its holding in the Magnesium
company to ICL for U.S. $1.3 million effective 1st January 2000. ICL will take
over the shareholders' loans extended to the Magnesium company.

After the balance sheet date the Company and the Magnesium company approved
changes to the services contract between them, including those to the effect
that a revised method for the charging of administrative costs has been
instated and the management fee of U.S. $100,000 per year paid to the Company
by the Magnesium company is nullified, effective 1st January 1999; the
Magnesium company will be free to purchase services, materials and other
inputs from alternative sources; the Magnesium company will be required to
purchase electricity from the Company's power plant of a predetermined amount
or a predetermined percentage of output (the lower of the two) on a "Take or
Pay" basis over 22.5 years, beginning 1st October 1999, with parameters
established to determine the price charged for electricity; and charges for
capital costs of infrastructure made available to the Magnesium company will
be based upon a pre-agreed formula.

The net income for this quarter was $23.8 million. This compares to net income
of $14.1 million for the equivalent quarter last year. The operating income
for the quarter was $32.7 million, compared to $26.1 million for the same
quarter last year. 



Consolidated Results
($ U.S. millions)

                           1-9/99         1-9/98        7-9/99         7-9/98

Net turnover                467.4          377.3         151.1          124.9

Profit before tax            85.1           57.7          29.0           22.3

Tax on Income               (27.6)         (25.2)         (6.5)         (10.6)

Net profit                   62.0           39.6          23.9           14.1

Number of 
shares (millions)           297.2          297.2         297.2          297.2

EPS ($)                      0.21           0.13          0.08           0.05 
 

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

END


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