Delta Galil reported sales for the second quarter of 2012 of $169.1 million, compared to $160.2 million in the same quarter of 2011, an increase of 6%. Sales in the first six months of 2012 also increased by 6% and amounted to $337.2 million, compared to $317.6 million in the first half of 2011.
The increased sales in the second quarter and first half of 2012 compared to the corresponding periods last year were due primarily to higher sales in North America.
Operating income before capital gains and one-time items amounted to $8.8 million in the second quarter of 2012, compared to $7.9 million in the second quarter of 2011, a 12% increase. In the first half of 2012, operating income before one-time items amounted to $15.2 million, compared to $11.9 million in the first half of 2011, a 28% increase.
Net income attributed to shareholders before capital gains and one-time items, net after tax, was $6.1 million in the second quarter of 2012, compared to $ 5.6 million in the same quarter of last year, a 9% increase. For the first six months of 2012, net income attributed to shareholders before capital gains and one-time items, net after tax, was $10.0 million, rising 16% from $8.6 million in the same period of 2011.
Diluted earnings per share attributed to shareholders, excluding capital gains and one-time items, was $0.25 for the 2012 second quarter and $0.41 for six months. In the second quarter and first six months of 2011, the comparable amounts were $0.24 and $0.35, respectively.
Results for the second quarter and first half of 2012 included the following capital gains and one-time items: i) a capital gain of $19.9 million from the sale of real estate; ii) expenses of $1.2 million arising from the acquisition of Schiesser Group; iii) a write-down of unused fixed assets of $1.3 million; and iv) restructuring expenses of $3.0 million, due to efficiency actions that included the consolidation of production sites at Karmiel, Israel and the relocation of the logistics center to Caesarea.
The total of all the one-time items included in operating income in the second quarter and first half of 2012 was positive $14.4 million. This compared to income from one-time items of $3.6 million in the first half of 2011, reflecting capital gains from realization of a fixed asset and the sale of a franchising agreement.
CEO Comment: Branded Products, Global Markets Drive Growth
Isaac Dabah, CEO of Delta Galil, stated: “We have continued our growth strategy of building a solid offering of branded products and pursuing opportunities in a range of international markets. As a result, we have delivered an increase in sales for the 11th consecutive quarter.
“The Company’s performance in the quarter reflected the strong business with our biggest customers, which drove solid top-line growth, especially in the U.S. market. In the second half of this year, we expect to benefit from our investment in Schiesser Group, an acquisition that we completed on July 2nd, 2012, which gives us an even greater presence in branded products and in new global markets.”
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