Israeli manufacturer of private label ladies' intimate apparel, socks, men's underwear, baby-wear and leisurewear Delta Galil Industries Ltd. has reported increased losses for the fourth quarter and full year 2005.

Revenues increased 2% in the fourth quarter to $170.2 million compared with the $167.2 million reported in the fourth quarter of 2004. Revenues in the fourth quarter excluding Burlen, which was acquired in the fourth quarter of 2004, decreased by 10% compared to the same period in 2004.

Revenues for 2005 increased by 5% to $684.5 million compared with $654.3 in 2004. Revenues, excluding Burlen, decreased by 11% compared with 2004.

Net loss for the fourth quarter of 2005 was $7.6 million compared with a net loss of $0.2 million in the fourth quarter last year.

Net loss in 2005 was $36.3 million compared with net income of $12.7 million in 2004. Net loss in 2005 includes reorganisation expenses, impairment of fixed assets and goodwill and capital loss from realisation of assets net of other income in the amount of $20.8 million, or $21.8 million before tax.

The primary reason for the deterioration in the operating results in the fourth quarter and in 2005 was said to be the erosion in selling prices to the company's customers, particularly to Marks & Spencer in the UK and in the European market.

Delta Galil manufactures apparel sold under brands such as Calvin Klein, Hugo Boss, Nike, and Ralph Lauren. Its products are sold world-wide through retailers including Wal-Mart, Marks & Spencer, Target, Victoria's Secret, JC Penney, and Hema.