Delta Galil swings back to profit in Q2 on higher revenue
10 Aug '06
3 min read
Delta Galil Industries Ltd, the global provider of private label ladies' intimate apparel, socks, men's underwear, baby-wear and leisurewear, reported second quarter 2006 revenues of $176.5 million compared to $168.9 million in revenues reported in the second quarter of 2005, an increase of 4.5 percent.
Revenues for the first half of 2006 were $348.5 million compared to $342.3 million in the first half of 2005, an increase of 1.8 percent.
Net income in the second quarter of 2006 was $0.5 million, or $0.03 diluted earnings per share, compared to the net loss of $3.0 million, or $0.16 diluted loss per share, reported in the second quarter of last year.
During the second quarter of 2006, the company decided to re-organize its activities in the Far East. This reorganization will include the closure of the Delta sewing plant in China. As a result the second quarter results include reorganization expenses of $1.7 million, consisting of a $1.2 million non-cash provision for impairment of fixed assets and a $0.5 million provision for severance payments related to employee dismissals.
Dov Lautman, Chairman and CEO, stated, "As part of the changes we are making in the organizational structure, Delta management has decided to focus our Chinese operations on procurement of finished goods and raw materials and product development. In addition, we have decided to close our sewing plant in China and to concentrate Far East self-production in Thailand. This decision is also due to re-imposed quotas on production in China starting in 2006."
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
