AIRPORT CITY, Israel, Oct. 17, 2019 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA) ("the Company"), a global construction and infrastructure company headquartered in Israel, provides an update to the activities of its joint venture for the Houston, Texas toll lanes project in the United States (the "Project"), which is jointly controlled and not consolidated into the Company's financial statements (please see sections 11.2.2 B and 13.5.1, of the Company's annual 2018 financial report, reference 2019-01-026980).
Based on recent updated estimates, an additional delay of several months to the final delivery date of the project is expected. To the best of the Company's knowledge based on information received from the joint venture's management, due to various factors of which some are not under the control of the Company, including weather-related events that have recently affected the pace of work progress, a revision of the indirect and direct costs is expected.
As a result of the delay, the joint venture's management estimates a reduction in the profits of the joint venture. Due to this reduction, a loss will be recorded in the Company's financial statements for the third quarter estimated between US$12-16 million, as of the date of this report (an estimated figure which has not been either reviewed or audited).
Please note that the Company's estimates of the timing of completion of the project and its impact on profitability are forward-looking statements, as defined in the Israeli Securities Law of 1968. This information is based, amongst others, on estimates and values which rely on indications and variables which are not under the control of the Company. This information may differ (and even materially) from that as described above.
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) energy; and 6) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter – "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.
SOURCE Shikun & Binui Ltd.