Dor Chemicals (TASE:DORC) today reported a huge improvement in its profit and sales, and negotiations to buy not only Shorko of Australia, but another polypropylene maker too.
Dor reported netting NIS 47.2 million for the first quarter of 2002, compared with NIS 382,000 in the parallel quarter of 2001.
Sales also steeply improved, rising 270% to NIS 209.9 million for the quarter ¿ more than posted for the whole year of 2001.
The company attributed the improvement to the acquisition of Moplefan, the Italian firm it purchased in December 2001. It owns 80% of Moplefan and has a call option, exercisable until year-end 2003, to buy the other 20% from BASF and Shell.
"That acquisition focused the company's activities in manufacturing polypropylene sheeting, making Dor one of Europe's leading companies," Dor director Zvi Mor told TheMarker. Dor expects its global production and sales to continue to grow, he added.
Regarding the anticipated acquisition of Shorko Australia for $25 million from Melbourne-based Basell Australia Holdings, Mor said that the due diligence process should be completed toward the end of June 2002. He added that financing for the deal has been set up, as have steps to integrate Shorko's activity into the group. Some of the financing will be from banks, mainly Australian ones, and the rest from the company's resources, he said.
Shorko makes polypropylene sheeting at a facility in Wodonga, Victoria province. Its capacity, 20,000 tons a year, makes it Australia's biggest producers in its sector, Basell claims.
Shorko isn't the only company in Dor's sights. "We are also conducting due diligence for Europe's third-biggest polypropylene maker, a world leader in its field," Mor disclosed. If the deal goes through, it will bring Dor presence in the American continent and elsewhere, he said.
A month ago Dor mentioned deliberations to offer its stockholders all its shares in subsidiary Dor Film. Any moves in that direction have been put off for the third quarter, Mor told TheMarker.