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Delta Galil Completes Self-Tender Repurchase

NEW YORK —Delta Galil Industries reported Tuesday it has successfully concluded its elf- tender offer.<br><br>The company had offered to repurchase,at a price of $11.00 per hare,up to an aggregate of 565,000 of its ordinary and American...

NEW YORK —Delta Galil Industries reported Tuesday it has successfully concluded its elf- tender offer.

The company had offered to repurchase,at a price of $11.00 per hare,up to an aggregate of 565,000 of its ordinary and American depositary hares, representing approximately 3 percent of its outstanding stock.

In the offer that commenced Nov.25,hareholders tendered an aggregate of 13,445,184 ordi- nary shares and American de- positary hares.In buying the 565,000 shares,as offered,Delta will purchase from each tender- ing shareholder about 4.2 per- cent of the properly tendered shares on a pro rata basis,round- ing off to the nearest whole num- ber to avoid fractional shares.

The offer expired at the close of business on Monday.

As reported,for the three months ended Sept.30,the Tel Aviv,Israel-based intimate appar- el maker reported a 51.9 percent spike in net income to $6.6 mil- lion,or 35 cents a diluted share. That compares with last year ’s profits of $4.4 million,or 23 cents. Sales for the period inched up 1.6 percent to $151.9 million from $149.5 million a year ago.

“We are reaping the fruits of our trategy of focusing on mar- ket leading customers,”said chief executive officer Arnon Tiberg in a tatement.”We are benefitting from improvement in our primary customers ’busi- nesses,and from the strengthen- ing of the pound sterling and the euro against the U.S.dollar.”

North American sales,which account for 57 percent of Delta ’s total quarterly revenue,grew 1.1 percent to $86.4 million from $85.5 million a year ago.Of that, sales to the U.S.mass market in- creased 5.8 percent to $59.8 mil- lion from $56.5 million last year, while North American specialty and department tore ales dropped 8.6 percent to $26.5 million from $29 million in the prior-year quarter.

Delta ’s ales to its largest customer,U.K.chain Marks & Spencer,gained 3.9 percent to $42.3 million from $40.7 million last year.Marks &Spencer made up 27 percent of Delta ’s total sales in the quarter.

“Our uccess in North America and more pecifically, in the mass market,is the direct result of our acquisition strate- gy,”aid chairman Dov Lautman in a tatement.”Ladies ’inti- mates continue to be a strong driver in this market and around the world.Delta ’s focus on North America and the mass market has expanded the diver- sity of our customer base and broadened the company ’s pro- duction sources.”

Also adding to the bottom line were lower costs.Despite the almost 2 percent ales in- crease,cost of ales fell 2.5 per- cent to $118.8 million from $121.9 million last year.

Overall,for the fir t nine months of the fiscal year,Delta reported a 16.2 percent increase in net income to $11.7 million,or 62 cents,versus last year ’s earn- ings of $10.1 million,or 53 cents. Excluding nonrecurring items in the first nine months related to the cancellation of a contract and a plant closure,year-to-date earnings would have increased 17.2 percent to $12.5 million,or 66 cents.Sales for the period dipped 3 percent to $407.9 mil- lion from $420.4 million.