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Shayne Heffernan strong buy Shikun & Binui Ltd. (TASE: SKBN.TA)("Shikun & Binui" or the "Company"), amember of the Arison Group and Israel's leadinginfrastructure and real estate company, announced today itsresults for the first quarter ended March 31st, 2012. Key noteworthy events during and subsequent to the first quarterand significant results: The Group completed the financial closing for construction of theIsrael Police's training academy amounting to NIS 691million. The NIS 2 billion project will be financed by IsraelDiscount Bank and Harel Group. Shikun & Binui Solel Boneh Infrastructures was awarded thetender to build Kadarim Junction, a 4-year NIS 250 million project. The project includes detailed environmental planning, in order toprotect the natural resources in the area. Shikun & BinuiSolel Boneh was also awarded the tender to upgrade a segment ofHighway 31 totaling NIS 200 million that is expected to continuefor 32 months. The Group's orders backlog in the construction andinfrastructure segments totaled NIS 8.6 billion on 31.3.2012, ofwhich NIS 6.9 billion ($1.8 billion) originates in theGroup's operations outside of Israel. Subsequent to thebalance sheet date, the Company signed on additional projectstotaling NIS 700 million. In March, the Group announced a cash dividend distribution toshareholders of NIS 65 million, representing NIS 0.16 per share. Shikun & Binui Real Estate sold 187 housing units in the firstquarter of 2012 for a total of NIS 260 million. In the firstquarter of last year, 238 units were sold for a total of NIS 338million. Shikun & Binui Real Estate expanded its activities in Haderaand purchased land at NIS 70 million for the construction of acommercial center. Shikun & Binui RED acquired control (67%) of a company thatowns companies operating in Poland, which had been accounted forpreviously by the equity method. With the transfer of control,and as a result of the revaluation of the investment to fair value,the Group recognized a gain of NIS 12 million. The Group isseeking new investments in Poland. Revenues from projects and sales totaled NIS 1.7 billion, growth of 28.5%compared with the first quarter of last year. Most of the growth was driven by the infrastructure andconstruction outside of Israel segment and the infrastructure andconstruction in Israel segment: revenues from the infrastructureand construction segment outside of Israel increased by 39%compared with Q1 of 2011, totaling NIS 941 million. The growthwas driven by expansion of operations in the countries in which theCompany operates and the entry into a new country – Tanzania;revenues from the infrastructure and construction in Israel segmentgrew by 32.3% compared with the same quarter last year, reachingNIS 459 million. Revenues from the infrastructure and construction outside of Israelsegment were impacted by the shekel-dollar exchange rate. In thefirst quarter of 2012, this effect was expressed in an additionalNIS 46 million in revenues. The revenues of the renewable energy segment were double that ofthe previous quarter, totaling NIS 38 million, as a result ofincreased consumption at the electricity plant in Ashdod. Revenues of the real estate development segment decreased by 6.5%compared with Q1 of 2011 to NIS 281 million. In the first quarterof last year, Shikun & Binui Real Estate sold lots for privateconstruction, whereas no sales of lots were recorded in the currentquarter. Gross profit totaled NIS 335 million (20% of revenues), growth of 3.8% comparedwith the first quarter of 2011 (24.3% of revenues). Gross profitof the infrastructure and construction outside of Israel segmentposted growth of 16%, reaching NIS 199 million. In the firstquarter, the effect of the dollar exchange rate was additionalgross profit of NIS 10 million. Other operating income totaled NIS 14 million, of which NIS 12 million was due to therevaluation of an investment in an affiliate, as a result of asubsidiary's acquisition of control in a company that ownscompanies operating in Poland. Operating income totaled NIS 263 million (15.4% of revenues), 8.7% higher than inthe first quarter of last year (18.2% of revenues). Operatingincome of the infrastructure and construction outside of Israelsegment increased by 17.7%. Net financing costs totaled NIS 34 million in the quarter, compared with NIS 39million in the first quarter of last year. Long-term financingcosts totaled NIS 66 million, compared with NIS 77 million in Q1 of2011. The decrease was driven by the increase of 0.87% in theCPI, compared with no change in the same period of 2011. Net income totaled NIS 166 million, an increase of 36% over the first quarterof last year. The delay in receiving payment from a foreign customer resulted inthe Company not recording positive cash flows from operatingactivities in the first quarter. In April, the Group collectedNIS 472 million on account of projects built for foreign customers. The Group does not revalue its investment property and they arepresented in the financial statements at historical cost. Equity as of March 31, 2012 passed the billion shekel mark, compared withNIS 969 million at the end of 2011. The Company has cash and cash equivalents balances totaling NIS 1.1billion and an unutilized credit facility totaling NIS 490 million. Total assets in the balance sheet amounted to NIS 9.9 billion. Doron Blachar, Group CFO: "The Group's financial condition is strongand enables the shareholders to receive dividends concurrent withcontrolled and responsible expansion of activities in all thegrowth engines." About Shikun & Binui Shikun & Binui, a member of the Arison Group, is the leadinginfrastructure and real estate company in Israel. The Group'ssubsidiaries have been operating since 1924. The Group'scompanies have gained extensive experience in complex constructionand infrastructure projects in Israel and abroad. Shikun &Binui Group has proven achievements in building, residentialneighborhoods, commercial and industrial buildings, as well aslarge-scale transportation, infrastructure and ecological projects,water purification and desalination and development ofinternational projects. In addition, Shikun & Binui alsooperates in the initiating, planning, construction and operation ofprojects in renewable energy. Shikun & Binui is a leading,multi-faceted and socially responsible international group thatproduces balance between the business, social and environmentalaccomplishment. The group places emphasis on honesty, transparency,innovation, and excellence. The group has accepted upon itself aleadership role in creation of a sustainable and progressive lifeenvironment. The above noted in this release includes forward-looking statementsbased on Company data, as well as Company plans and estimationsbased on this data. The activity, results and other data may besubstantially different in reality given uncertainty and variousrisks, including those discussed under risk factors in theCompany's financial statements and Director's reports. Shikun & Binui Ltd. Condensed Consolidated Interim Statement of Financial Position asat Shikun & Binui Ltd. Condensed Consolidated Interim Statement of Financial Position asat (cont'd) Shikun & Binui Ltd. Condensed Consolidated Interim Statement of Income Operating Segments Table continued Table continued Operating Segments (cont'd) Table continued Contact the Author Share Us. 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