Fishman's Alliance Tires rolls out 750% increase in net loss

Alliance Tire Company (TASE: ALIN) today reported one of the worst quarters in its history.

The troubles are evident in all sections of its financial statements. Revenues shrank and losses mounted, and its operating loss soared.

The tire manufacturer, controlled by Eliezer Fishman and his family, saw its loss mount 750% for the second quarter of 2002, while revenues sank 27% to NIS 95.4 million.

Due to a 6% jump in sales costs, its second-quarter 2002 gross loss mounted to NIS 23.2 million, compared with a gross profit of NIS 19.5 million in the parallel quarter of last year.

Its operating loss climbed skyward to NIS 46.5 million, compared with NIS 2.8 million in the parallel quarter.

Nor did financing bring the company any comfort: expenses climbed to NIS 19.5 million, up 273% from the corresponding quarter of last year.

Its bottom line was red for the fifth consecutive quarter, with a loss of NIS 71.2 million, 750% more than in the parallel quarter when it lost NIS 8.4 million.

Its massive first-half loss has shrunken its shareholders equity from NIS 192.2 million when 2002 began, to NIS 102.4 million.

Inventories contracted by NIS 99 million this year, while credit from banks bloated to NIS 438.8 million, as of June 30, 2002.

The gap between total ongoing assets and ongoing commitments attests to the company's sorry condition. Commitments stand at NIS 542 million while ongoing assets are less than half that, NIS 251.1 million. These assets include NIS 7.7 million cash and equivalents.

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