The quarterly reports as an example of the virus: El Al collapsed, Shufersal Nazca | Israel Today

Losses of about half a billion shekels to El Al, and a net profit of about 97 million shekels to Shufersal • El Al: "We have not yet reached an agreement on a loan with the financing bodies" • Fluctuations in trade in Tel Aviv and mixed opening in New York

• El Al planes at Ben Gurion Airport

  Photography: 

  Coco

Vaccines approaching Corona are bouncing around the world markets, and last Monday night's trading day closed with a new high in the Dow Jones industrial average: crossing the 30,000-point mark for the first time.

The other two leading indices - NASDAQ and S & P500 - have climbed to 1.62%.

In Israeli companies, Elbit rose more than 5% in light of good reports indicating an increase in revenue in the third quarter of the year and a 25% growth in adjusted profit, to a level of about $ 73 million.

Archive // ​​Photo: El Al Workers' Committee

Trading on the Tel Aviv Stock Exchange began rising yesterday, but during the day the trend changed and trading closed with slight declines of less than 1% in all the leading Tel Aviv indices.

El Al shares fell by 3.5% due to very weak results in the third quarter, with a loss of nearly half a billion shekels and a capital deficit of about 400 million shekels.

For comparison, in the corresponding quarter last year, before the corona period, El Al finished with a profit of about NIS 90 million.

As of July and following the cessation of operations in the field of scheduled flights, the company's revenues fell by a dramatic rate of 94% to NIS 130 million - 16 times less than in the corresponding quarter in 2019.

"Examining bond issue"

These are bad results, but also expected after the extensive shutdown of the company's operations and closures imposed during the holidays and the shortage of flights worldwide due to the Corona.

As you may recall, the state came to El Al's aid, and during the quarter the company raised about NIS 505 million by issuing shares in accordance with the aid scheme.

"The company has not yet reached an agreement in principle with the financing bodies regarding the receipt of a loan, in accordance with the outline of the Treasury, and is considering an alternative of raising debt through the issuance of bonds," El Al said.

The company signed convalescence agreements with its employees, which were a condition for the state's aid scheme, and in this framework it was agreed to reduce the company's workforce by about 2,000 employees - of which about 1,100 temporary workers.

It was also decided on wage reductions for high-wage earners.

The expected efficiency of salary expenses during the agreement period, which will be spread over five years, and assuming that the scope of activity will be 75% of full activity in relation to the activity planned by the company for 2020 - is expected to amount to NIS 865 million per year.

A non-wage efficiency plan was also agreed.

While El Al is licking its wounds, Shufersal is celebrating with a 76% jump in net profit to NIS 97 million - mainly thanks to the control of online orders, which now account for more than one-fifth of the company's total sales.

It should be noted that 80% of the increase in revenue is attributed to Corona - NIS 400 million, so the company will face a challenge if the trend does disappear from the landscape in the coming months.

Fox reports a 166% jump in adjusted profit, to more than NIS 54 million, after neutralizing a one-time profit from last year - despite the closures.

Revenue jumped more than 5.5%.