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Tefron reports strong profit rise in Q2
08 Aug '06
3 min read
Revenues in the first half of 2006 reached $99.1 million, representing a 16.1% increase over revenues generated during the first half of 2005. The growth in revenues over the first half of 2005 was across all of the Company's product lines.
The 2006 first half gross margin increased to 23.0% from 13.4% in the first half of 2005. Operating income grew to $14.1 million (14.3% of revenues) compared to an operating income of $4.3 million (5.0% of revenues) in the first half of 2005.
Income from continuing operations, which excludes the recently sold AlbaHealth business, reached $9.8 million (9.9% of revenues), or $0.47 per diluted share in the first half of 2006, compared with an income from continuing operations of $1.9 million (2.2% of revenues), or $0.11 per diluted share, in the first half of 2005.
Yosef Shiran, CEO of Tefron, said, "Following on from our strong results of the first quarter this year, we are pleased to announce another successful quarter for Tefron. Most significantly, the increase in our revenues compared with the comparable period of last year was across all of our product lines and was accompanied by an improvement in both our gross and operating margins."
The Company's Board of Directors declared a dividend of $5 million payable to shareholders of record as of August 31, 2006. The dividend is scheduled for payment on September 14, 2006.
Shiran commented, "Over the last few quarters, and due to the sale of Alba Health in the second quarter, our cash reserves have grown considerably. The Board's decision to issue this dividend is to share the rewards of our performance with our shareholders. We still maintain sufficient cash for working capital and developing our business."
Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, The Gap, Banana Republic, Target, Warnaco/Calvin Klein, Patagonia, Reebok and El Corte Englese, as well as other well known retailers and designer labels.
The 2006 first half gross margin increased to 23.0% from 13.4% in the first half of 2005. Operating income grew to $14.1 million (14.3% of revenues) compared to an operating income of $4.3 million (5.0% of revenues) in the first half of 2005.
Income from continuing operations, which excludes the recently sold AlbaHealth business, reached $9.8 million (9.9% of revenues), or $0.47 per diluted share in the first half of 2006, compared with an income from continuing operations of $1.9 million (2.2% of revenues), or $0.11 per diluted share, in the first half of 2005.
Yosef Shiran, CEO of Tefron, said, "Following on from our strong results of the first quarter this year, we are pleased to announce another successful quarter for Tefron. Most significantly, the increase in our revenues compared with the comparable period of last year was across all of our product lines and was accompanied by an improvement in both our gross and operating margins."
The Company's Board of Directors declared a dividend of $5 million payable to shareholders of record as of August 31, 2006. The dividend is scheduled for payment on September 14, 2006.
Shiran commented, "Over the last few quarters, and due to the sale of Alba Health in the second quarter, our cash reserves have grown considerably. The Board's decision to issue this dividend is to share the rewards of our performance with our shareholders. We still maintain sufficient cash for working capital and developing our business."
Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, The Gap, Banana Republic, Target, Warnaco/Calvin Klein, Patagonia, Reebok and El Corte Englese, as well as other well known retailers and designer labels.
Tefron Ltd
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