ISRAEL: Tefron swings to second-quarter profit
- Swings to a Q2 profit of US$1.3m
- Sales increase 1.4% to $29.8m
- Seamless apparel sales up 22%
Lingerie and activewear manufacturer Tefron has swung to a second-quarter net profit on the back of increased sales of seamless apparel.
Operating profit reached $149,000, compared to a $1.3m loss the same period last year, due to seamless segment sales and the company's efforts to continue streamlining operations, as well as a decline in depreciation costs and administration and general expenses.
Sales climbed 1.4% to $29.8m, primarily due to a 22% increase in seamless apparel sales and the company's continuing success in North America.
"In the second quarter of 2012, Tefron recorded an increase of 22.2% in the seamless apparel sector sales," CEO Amit Meridor said.
"This very positive operational result, as well as the stronger financial results we reported are a direct outcome of the large scale investments that we have made at Tefron over the past two years, particularly in the development of new products and the improvement in product mix."
Meridor added that the group is currently in negotiations with a Chinese partner to establish and expand its supply and production resources.
"This is a major and important strategic step in the company's future that will allow us to maximise profitability with increased production capabilities and a competitive cost structure from East Asia that is under the company's control.
"This will also allow our local management to focus more time and resources in the development of advance product lines at the development centre in Israel."
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