Increase of 22.2% in seamless apparel sales at Tefron

 Arnon Teiberg, Tefron Chairman: "Tefron's success lies in its ability to leverage the company's impressive technological legacy in its sector to further lead the global engineered seamless apparel industry with more advanced technologies and products to meet ever more demanding customer requirements. The cooperation agreements that Tefron signed in the first half of 2012 are significant milestones in establishing a global production and distribution network, thereby strengthening Tefron's position as the worldwide leader in the engineered seamless apparel industry.
 
The company's sales in the second quarter of 2012 totaled $29.3M, a 1.4% increase in comparison to $28.8M in the corresponding period last year. The company's sales in the first half of 2012 totaled $57.6M, a 1.5% increase in comparison to $56.8 in the corresponding period last year.

In Q2 2012 the company recorded an increase of 22.2% in the "seamless" sector sales in comparison to the corresponding period last year. This increase mainly derives from continuation of the Company's sales efforts that leveraged sales to clients that were absorbed in the Nouvelle transaction and continued with the strategic success in penetrating mass markets in North America. To the best of the Company's knowledge, the sales in the seamless segment positions Tefron as one of the global leaders in the seamless sector.

Gross profit in Q2 2012 totaled $4.7M (16.2% of the sales) in comparison to gross profit in the amount of $4.3M (14.7% of the sales) in the corresponding period last year. Gross profit in the first half of 2012 totaled $10.0M (17.3% of the sales) in comparison to $9.2M (16.2% of the sales) in the corresponding period last year. Increase in gross profit and gross profit percentage mainly stemmed from streamlining operations, developing alternative suppliers, and strengthening of the dollar exchange rate in comparison to the Shekel.

Operating profit in Q2 2012 totaled 149 thousand dollars in comparison to operating loss in the amount of $1.3M in the corresponding period last year. Operating profit in the first half of 2012 totaled 256 thousand dollars in comparison to operating loss in the amount of $3.2M in the corresponding period last year.

In January 2012 the Company signed a cooperation agreement with the Italian Cifra S.P.A Company that, to the best of the Company's knowledge, is the leading player in the seamless warp knitting sector - a seamless knitting technology. In the framework of cooperation, Cifra and the Company will jointly develop and design seamless warp knitting products in the sports, underwear and swimwear sectors.