Challenging Market Leads to Sarine Profit Drop

RAPAPORT... Profit at Sarine Technologies plunged sharply in the fourthquarter, amid weaker industry sentiment that impacted consumer spending, theequipment maker said Sunday. Profit dropped 85% year on year to $93,000 for the threemonths ending December 31, as uncertainties in China and tightening bank creditto India's manufacturing sector resulted in lower capital-equipment sales andreduced recurring revenues, it said. Increased income tax expenses on thewrite-down of certain deferred tax assets also hit profit. Revenue for theperiod fell 6% to $12.2 million. Revenue in India, Sarine's biggest market, fell 20% to $5.9million for the October-to-December period. North American sales jumped 10% to$222,000, while in Israel, revenue slumped 33% to $786,000. Revenue for the yearslipped 0.2% to $58.5 million, while profit increased 32% to $7.6 million. Sarine believes "adverse sentiments are likely to persist"in 2019, primarily due to credit tightening by Indian banks.Image: Sarine Technologies headquarters in Hod HaSharon, Israel. (Sarine Technologies)