Dead Sea Works Ld - Final Results

RNS No 8864r
DEAD SEA WORKS LTD
4th March 1998

 
DEAD SEA WORKS LTD
 
Results for fourth quarter 1997 and for the fiscal year 1997
 
The  results in this report for 1997 are those of the consolidated financial 
statements of Dead Sea Works and its subsidiaries. The subsidiaries include 
Dead Sea Magnesium Ltd. (DSM) and Dead Sea Works share in Clearon 
Holding Corporation, which is situated in the United States. 
 
Comparative figures for 1996 include Dead Sea Magnesium Ltd. 
commencing May 16, 1996 (the date on which the company was activated), 
and Clearon Holding Corporation commencing the beginning of the third 
quarter 1996, the time at which its shares were acquired.
 
The net income of the company for this quarter was $2.8 million, compared 
to $9.3 million for the same quarter last year (a decrease of 70%). 
 
The decrease in net income was mainly due to the consolidation of the 
results of DSM, which in previous quarters was deemed to be in its start-up 
phase, with run-in  and financing costs capitalized accordingly. The decrease 
was also partly due to the effect of provisions made for employee 
termination benefits on the cost of sales. In addition, a drop in average 
potash prices was only partially offset by increased sales volumes. 
 
The net income of the company for 1997 came to $39.6 million compared to 
$39.8 million in 1996.
 
The operating income of the company for 1997 was $66.1 million, 
compared to $64.2 million in 1996.
 
The company sold a record 2.86 million tonnes of potash during 1997, a 
31% increase over 1996 sales volumes.
 
 
 
                                              1997                  1996
                                       Consolidated             Consolidated
                                       ($ millions)             ($ millions)
 
Net Turnover                                 453.2                   357.6
 
Profit before tax                             60.1                    63.6
 
Tax on income                                (24.1)                  (24.3)
 
Net profit                                    39.6                    39.8
 
Number of shares (millions)                  285.8                   285.8
 
EPS ($)                                        0.14                    0.14
 

 
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