Koor Reports 2Q ILS1.92 Million Net Loss Due To Credit Suisse Investment
August 28 2011 - 6:06AM
Dow Jones News
Israeli holding company Koor Industries Ltd. (KOR.TV) said
Sunday that its net loss for the second quarter totaled 1.92
billion shekels ($53 million) due to the declining price of shares
in Credit Suisse Group (CS), one of its investments.
In the second quarter of 2010, Koor reported a net profit of
ILS35.4 million. Revenue was ILS421 million, up slightly from
ILS407 million.
Koor had warned that it would report a loss from the declining
price in shares of Credit Suisse, which it has been buying and
selling since 2008. Koor recently reduced its holding in Credit
Suisse to 2.14% from 3.21%, due to the declining share price and
the need to pay back lenders that loaned it money to buy the Swiss
bank shares. Koor said it expects the Credit Suisse investment to
continue having a negative effect on its financial situation. It
said it would report a loss of ILS91 million in its third quarter
financial results due to the investment.
At 1000 GMT, shares of Koor were up ILS0.01, or 0.03%, at
ILS30.78, in a higher Tel Aviv market.
-By Sara Toth Stub, Contributing to Dow Jones Newswires;
saratoth@gmail.com