Global slowdown no hurdle for corporate revenue

"The leading industrial companies of the Israeli economy will continue to grow in 2008," said Reuven Kovent, CEO of D&B Israel.

teva logo 88 (photo credit:)
teva logo 88
(photo credit: )
Despite the global slowdown forecast as a result of the US subprime mortgage crisis, corporate revenues continued to climb in 2007, with Israel's 10 leading industrial companies showing a combined 11 percent increase over 2006 to NIS 151.5 billion, and continued growth expected this year, Dun & Bradstreet Israel reported on Sunday. "The leading industrial companies of the Israeli economy will continue to grow in 2008," said Reuven Kovent, CEO of D&B Israel. "Despite the expected slowdown in the world economy, these companies are poised to enjoy an increase in business activity since they are active in more defensive industries such as chemicals, defense and medical drugs." The economy began 2007 with a loud boom, but the year ended quietly following the global credit crisis, Kovent added. According to "Dun's 100 report," the 10 leading industrial companies by sales generated NIS 151.5b. in revenues last year compared with NIS 136.5b. in 2006. Benefiting from the merger with Tadiran Kesher, Elbit Systems (No. 8 in total sales), controlled by Micky Federman, was the fastest growing company in the top 10 in 2007, with sales growth of 30% year on year, to NIS 8.1b. Teva Pharmaceuticals Industries Ltd., which was No. 1 in sales volume, saw its revenues increase by 11.9% to NIS 38.6b. in 2007, with 96% coming from exports. In 2008, expectations are that Teva sales will continue to grow by 10% to 15% and Elbit Systems by 15%. No. 2 in total revenues was Oil Refineries Ltd. (Bazan), generating NIS 21.3b. in sales, up 2.6% from 2006. The Israel Electric Corp. was third with sales growth of 6% to NIS 19.3b. Israel Chemicals Ltd., ranked at No. 4 in sales, also enjoyed strong growth in 2007, with revenues up 16% to NIS 16.8b. Economists at D&B Israel forecast improved revenue growth for Israel Chemicals Ltd. in 2008, driven by strong demand and rising prices for fertilizers. "Israel Chemicals Ltd., ranked in fourth place, is poised to improve its position in 2008," the economists said.