SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of May 2003
DELTA GALIL INDUSTRIES LTD.
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(Translation of registrant's name into English)
TEXTILE BUILDING, 2 KAUFMAN STREET, TEL AVIV 68012, ISRAEL
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- N/A
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Attached hereto and incorporated by reference are:
(i) a press release dated May 13, 2003; and
(ii) a translation of an Immediate Report filed with the Tel Aviv Stock
Exchange on May 14, 2003.
This Form 6-K is hereby incorporated by reference of into (i) the Registration
Statement of F-3 (Registration No. 333-12984) and (ii) three Registration
Statements on Form S-8 of Delta Galil Industries Ltd. (Registration Nos.
333-12608, 333-13716 and 333-102247).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Delta Galil Industries Ltd.
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(Registrant)
By: /s/ Yossi Hajaj
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Name: Yossi Hajaj
Title: Controller and Corporate Secretary
Date: May 14, 2003
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DELTA
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GALIL INDUSTRIES LTD.
[LOGO]
EARNINGS RELEASE
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DELTA GALIL ANNOUNCES $0.40 EPS, $7.3 MILLION NET PROFIT FOR FIRST QUARTER 2003;
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EPS $0.23, NET PROFIT $4.2 MILLION, EXCLUDING NON RECURRING ITEMS
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TEL AVIV, ISRAEL - MAY 13, 2003 - DELTA GALIL INDUSTRIES LTD. (NASDAQ:
DELT), the global provider of private label intimate apparel, men's underwear,
socks, baby wear and leisurewear, today reported that first quarter sales
increased 10 percent to $136.9 million, compared to $124.8 million in the first
quarter of 2002. North America accounted for 60 percent of total first quarter
sales, Europe for 34 percent and Israel for 6 percent.
Net profit and earnings per share for the first quarter increased 297
percent and 300 percent respectively, to $7.3 million or $0.40 per share,
compared to $1.8 million or $0.10 per share for the same period last year. Net
profit and earnings per share for the first quarter, before non-recurring items,
increased 61 percent and 64 percent respectively to $4.2 million or $0.23 per
share compared to $2.6 million or $0.14 per share for the same period last year.
In the first quarter of 2003, Delta recognized non-recurring gains of
$3.1 million or $0.17 per share, compared to non-recurring losses of $0.8
million or $0.04 per share in the first quarter of 2002. The Company believes
that the separate presentation of this information will allow investors to
compare the performance of its continuing operations in the first quarter of
2003 with the performance of its continuing operations in the first quarter of
2002. A table is attached below detailing these non-recurring items.
Delta's sales in North America increased 27 percent for the first
quarter, totaling $81.8 million compared to $64.5 million in the first quarter
of 2002.
Sales to the US mass market increased 53 percent to $61.0 million
compared to $39.8 million in the first quarter last year. This improvement is
attributed to increased sales to Wal-Mart and Target.
Dov Lautman, Chairman of Delta, commented: "We continue to grow in the US
mass market and we are examining every opportunity for further increases."
Delta's North American sales to specialty and department stores dropped
16 percent in the first quarter, totaling $20.8 million compared to $24.7
million in the first quarter of 2002.
Delta's sales to its largest customer, UK chain Marks & Spencer,
decreased 11 percent in the first quarter, totaling $33.5 million, compared to
$37.6 million in the first quarter of 2002.
Arnon Tiberg, Delta's President and CEO, stated: "The increase in sales
in the first quarter was according to the Company's annual sales plan, however
sales distribution in the first quarter was not reflective of the Company's
annual sales plan. The increase in sales to the US mass market was better than
anticipated, while sales to Marks & Spencer were lower than projected. The
decrease in sales to Marks & Spencer for the quarter was affected by the
customer's decision to increase inventory in the fourth quarter, which resulted
in a 30 percent increase in sales at the time, in addition to an overall
decrease in Marks & Spencer's sales to its customers in the first quarter".
Operating profit for the first quarter increased 304 percent to $10.6
million compared to $2.6 million in the first quarter of last year. Operating
profit for the first quarter, before non-recurring items, increased 52 percent
to $7.6 million compared to $5.0 million in the same period in 2002.
Operating cash flow for the first quarter totaled $17.7 million compared
to $1.9 million in the first quarter of 2002.
The Board of Directors of the Company announced the distribution of a
dividend of approximately $2.6 million, or $0.14 per share, for the first
quarter of 2003, payable to shareholders of record on May 20, 2003.
DELTA GALIL IS A LEADING GLOBAL MANUFACTURER OF QUALITY APPAREL FOR THE MASS
MARKET SOLD UNDER BRANDS SUCH AS RALPH LAUREN, DONNA KARAN, CALVIN KLEIN, HUGO
BOSS AND NIKE. RECOGNIZED FOR PRODUCT INNOVATION AND DEVELOPMENT, DELTA'S
PRODUCTS ARE SOLD WORLDWIDE THROUGH RETAILERS INCLUDING MARKS & SPENCER,
VICTORIA'S SECRET, GAP, BANANA REPUBLIC, CARREFOUR, J. CREW, TARGET, WAL-MART
AND OTHERS. HEADQUARTERED IN ISRAEL, DELTA OPERATES MANUFACTURING FACILITIES IN
ISRAEL, JORDAN, EGYPT, TURKEY, EASTERN EUROPE, NORTH AND CENTRAL AMERICA,
CARIBBEAN AND FAR EAST. DELTA CONCLUDED ITS U.S. IPO IN MARCH OF 1999. FOR MORE
INFORMATION, PLEASE VISIT OUR WEBSITE: WWW.DELTAGALIL.COM.
(THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS AS THAT TERM IS DEFINED
IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS ARE
BASED ON THE CURRENT EXPECTATIONS OF THE MANAGEMENT OF DELTA GALIL INDUSTRIES
LTD. (THE COMPANY) ONLY, AND ARE SUBJECT TO A NUMBER OF RISK FACTORS AND
UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO CHANGES IN TECHNOLOGY AND MARKET
REQUIREMENTS, DECLINE IN DEMAND FOR THE COMPANY'S PRODUCTS, INABILITY TO TIMELY
DEVELOP AND INTRODUCE NEW TECHNOLOGIES, PRODUCTS AND APPLICATIONS, LOSS OF
MARKET SHARE, PRESSURE ON PRICING RESULTING FROM COMPETITION, AND INABILITY TO
MAINTAIN CERTAIN MARKETING AND DISTRIBUTION ARRANGEMENTS, WHICH COULD CAUSE THE
ACTUAL RESULTS OR PERFORMANCE OF THE COMPANY TO DIFFER MATERIALLY FROM THOSE
DESCRIBED THEREIN. FOR A MORE DETAILED DESCRIPTION OF THE RISK FACTORS AND
UNCERTAINTIES AFFECTING THE COMPANY, REFER TO THE COMPANY'S REPORTS FILED FROM
TIME TO TIME WITH THE SECURITIES AND EXCHANGE COMMISSION.)
CONTACTS:
AVIRAM LAHAV DELTA GALIL INDUSTRIES LTD. TEL: +972-3-519-3744
RACHEL LEVINE THE ANNE MCBRIDE COMPANY TEL: +212-983-1702
FINANCIAL TABLES FOLLOW