Africa-Israel Advances Most in 2 Weeks on Second-Quarter Profit

Africa-Israel Investments Ltd. (AFIL) climbed the most in two weeks after Lev Leviev’s holding company reported second-quarter net income of 32 million shekels ($8.9 million) as revenue increased 37 percent.

The shares jumped 4.9 percent, the most since Aug. 14, to 14.43 shekels at 12:11 p.m. in Tel Aviv. The stock has dropped 23 percent over the past year.

Net income declined from 1.21 billion shekels a year earlier, the Yehud, Israel-based company said today in an e- mailed statement. Revenue climbed to 1.69 billion shekels in the quarter from 1.23 billion shekels.

The results aren’t directly comparable because the company reached a settlement with bondholders last year, said Noam Pincu, an analyst at Psagot Investment House Ltd. in Tel Aviv. Africa-Israel exchanged about 7.5 billion shekels of fixed- income securities for new bonds, cash and equity in May 2010 after the value of its real-estate portfolio tumbled amid the global credit crisis.

“As long as Africa-Israel has a profit after the problems it had in the past it’s good,” Pincu said by telephone. “Profit at Africa-Israel like many holding companies, especially in real estate, is very volatile.”

To contact the reporter on this story: Susan Lerner in Jerusalem at slerner2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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