Hadera Paper Ltd. reported audited consolidated earnings results for the fourth quarter and full year and audited separate earnings results for the full year ended December 31, 2012. The consolidated sales in the fourth quarter amounted to ILS 499.1 million, as compared with ILS 476.8 million in the corresponding quarter last year, representing an increase of approximately 4.7% that originates primarily from the quantitative growth at all group companies and primarily in the packaging products and cardboard sector, growth that was also recorded as a result of the raising of prices in relation to the corresponding quarter last year. The company's operating profit amounted to ILS 13.4 million in the fourth quarter of the year, as compared with an operating loss of ILS 54.4 million in the corresponding quarter last year. The net profit for the fourth quarter amounted to ILS 10.1 million, as compared with a net loss of ILS 80.9 million in the corresponding quarter last year. The consolidated sales in 2012 amounted to ILS 1,976.0 million, as compared with ILS 2,018.6 million in the corresponding period last year, representing a decrease of 2.1% originating primarily from the decrease in sales in the packaging paper and recycling sector, as well as a decrease in the Hadera Paper Printing sector, in relation to last year. The operating profit amounted to ILS 41.3 million in 2012, equal to 2.1% of sales, in relation to an operating loss of ILS 8.5 million. The net profit attributed to the company's shareholders in 2012 amounted to ILS 4.3 million, as compared with net loss of ILS 116.6 million attributed to the company's shareholders in 2011. Basic and diluted earnings per share amounted to ILS 0.84 as compared with a basic and diluted loss per share of ILS 22.90 a year ago. The investments in fixed assets amounted to ILS 84.9 million in 2012, as compared with ILS 94.4 million in 2011. The cash flows from operating activities totaled ILS 134.2 million in 2012, as compared with cash flows from operating activities of ILS 186.3 million in 2011. The decrease in the cash flows from operating activities in 2012, as compared with last year, is primarily attributed to an increase in working capital that amounted to ILS 6.7 million in 2012, as compared with a decrease of ILS 55.3 million last year. Loss before taxes on income was ILS 6,060,000 compared to ILS 130,916,000 a year ago. Acquisition of property plant and equipment and prepaid expenses in respect of a financing lease was ILS 84,921,000 compared to ILS 94,436,000 a year ago. For the year, on separate basis, the company reported Profit before taxes on income of ILS 6,729,000 compared to loss before taxes on income of ILS 107,922,000 a year ago. Profit for the year was ILS 4,259,000 compared to loss for the year of ILS 116,572,000 a year ago. Net cash generated from operating activities was ILS 94,989,000 compared to ILS 159,581,000 a year ago. Acquisition of fixed assets and prepaid leasing expenses was ILS 2,227,000 compared to ILS 3,792,000 a year ago.

Hadera Paper Ltd. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. For the nine months, the company reported revenue of ILS 1,476.845 million against ILS 1,541.733 million a year ago. Profit from ordinary operations was ILS 27.899 million against ILS 45.838 million a year ago. Loss before taxes on income was ILS 15.496 million against ILS 44.934 million a year ago. Loss attributed to company shareholders was ILS 5.821 million or ILS 1.14 per primary and fully diluted share of ILS 0.01 par value against ILS 35.704 million or ILS 7.02 per primary and fully diluted share of ILS 0.01 par value a year ago. Net cash generated by operating activities was ILS 55.555 million against ILS 68.001 million a year ago. Acquisition of fixed assets and prepaid expenses in respect of a financing lease was ILS 60.811 million against ILS 59.213 million a year ago. The investments included primarily payments on account of investments in environmental compliance (sewage treatment) along with current investments in the renovation of equipment, means of transport and building maintenance at the Hadera site. Sales represents a decrease of 4.2% originating primarily from the decrease in sales in the packaging paper and recycling sector, as well as a decrease in the sales of Hadera Paper Printing sector, in relation to the corresponding period last year. The preservation of the operating profit, as compared with the corresponding period last year, is primarily attributed to the decrease in some of the input prices, along with a reduction in labor costs, due to measures initiated by the company. These influences were partially offset by a decrease in sales as a result of the slowdown in activity in the markets, coupled with a sharp increase in energy costs, that constitute a material component in the production process. The transition to a net loss is attributed to the company's shareholders was influenced primarily by the decrease in the operating profit during the period, as compared with the corresponding period last year, due to a decrease in sales in light of the slowdown of activity in the markets, coupled with higher energy costs, that were offset by a decrease in the financing expenses during the period, as compared with the corresponding period last year, in the amount of ILS 2.0 million, and by growth in tax revenues in the amount of ILS 3.5 million, coupled with non-recurring revenues from the sale of the operations of a subsidiary in Netivot. Net debt as at September 30, 2012, net of the balance of deposits and cash amounted to ILS 1,033.7 million, as compared with net debt in the amount of ILS 1,054.5 million as at September 30, 2011. The decrease in the cash flows from operating activities is primarily attributed to an increase in working capital that amounted to ILS 48.5 million, as compared with an increase of ILS 44.1 million in the corresponding period last year. For the quarter, the company reported revenue of ILS 487.037 million against ILS 519.491 million a year ago. Profit from ordinary operations was ILS 3.435 million against loss from ordinary operations of ILS 9.502 million a year ago. Loss before taxes on income was ILS 10.388 million against ILS 51.422 million a year ago. Loss attributed to company shareholders was ILS 6.106 million or ILS 1.20 per primary and fully diluted share of ILS 0.01 par value against ILS 43.560 million or ILS 8.56 per primary and fully diluted share of ILS 0.01 par value a year ago. Net cash generated by operating activities was ILS 24.311 million against ILS 9.458 million a year ago. Acquisition of fixed assets and prepaid expenses in respect of a financing lease was ILS 21.708 million against ILS 23.646 million a year ago. Sales represents a decrease of approximately 6.3%, that originates primarily from the quantitative decrease in sales of the packaging paper and recycling segment as well as Hadera Paper Printing. Operating profit in the third quarter originated primarily from the transition to operating profit in the Hadera Paper Printing segment, coupled with the improvement in operational efficiency in paper manufacturing at the various companies, that was offset as a result of the sharp rise in energy costs, as compared with the corresponding quarter last year. The reduction of the net loss for the quarter, despite the sharp rise in energy prices during the third quarter as compared with the corresponding quarter last year, in the amount of approximately ILS 11.7 million, is primarily attributed to the improvement operating profit for the quarter, as compared with the loss last year, as a result of the decrease in some of the prices of raw materials, coupled with operational efficiency measures and savings in wages, as mentioned above, that served to compensate for the decrease in sales in the quarter, in light of the slowdown in market activity.

Hadera Paper Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, the company reported revenue of ILS 481.894 million against ILS 504.633 million a year ago. Profit from ordinary operations was ILS 15.327 million against ILS 1.491 million a year ago. Loss before taxes on income was ILS 0.637 million against ILS 41.016 million a year ago. Profit for the period attributed to company shareholders was ILS 1.902 million or ILS 0.37 per primary and diluted share against loss for the period attributed to company shareholders of ILS 33.336 million or ILS 6.5 per primary and diluted share a year ago. Net cash generated by operating activities was ILS 80.315 million against ILS 19.161 million a year ago. Acquisition of fixed assets and prepaid expenses in respect of a financing lease was ILS 17.742 million against ILS 17.622 million a year ago. Acquisition of other assets was ILS 0.002 million against ILS 0.004 million a year ago. For the six months, the company reported revenue of ILS 989.808 million against ILS 1,022.242 million a year ago. Profit from ordinary operations was ILS 24,464 million against ILS 55.340 million a year ago. Loss before taxes on income was ILS 5.108 million against profit before taxes on income of ILS 6.488 million a year ago. Profit for the period attributed to company shareholders was ILS 0.285 million or ILS 0.06 per primary and diluted share against profit for the period attributed to company shareholders of ILS 7.856 million or ILS 1.54 per primary and diluted share a year ago. Net cash generated by operating activities was ILS 31.244 million against ILS 58.543 million a year ago. Acquisition of fixed assets and prepaid expenses in respect of a financing lease was ILS 39.079 million against ILS 35.567 million a year ago. Acquisition of other assets was ILS 0.024 million against ILS 0.186 million a year ago. Consolidated sales decreased of 3.2% originating primarily from the decrease in sales in the packaging paper and recycling sector in relation to the corresponding period last year. The decrease in net profit attributed to the company's shareholders was influenced primarily by the decrease in the operating profit as compared with the corresponding period last year, due to a decrease in sales in light of the slowdown of activity in the markets, coupled with higher energy prices, in addition to an increase in the financing expenses during the reported period, as compared with the corresponding period last year, in the amount of ILS 2.5 million, that were offset by non-recurring revenues from the sale of the operations of the subsidiary in Netivot.