Zim drags down Israel Corp profit

Israel Corp reported lower profits on higher revenue for the second quarter of 2011.

Israel Corporation (TASE: ILCO) reported lower profits on higher revenue for the second quarter of 2011. Revenue rose to $3.14 billion from $2.54 billion for the corresponding quarter of 2010, but net profit attributable to majority shareholders fell by one third to $103 million ($20.75 per share) from $157 million. Net profit rose to $313 million for the second quarter from $301 million for the corresponding quarter.

Israel Corp. had $10 billion in marketable assets at the end of June and $5.5 billion in debt.

Wholly-owned Israel Corp. subsidiary Zim Integrated Shipping Services Ltd. lost $68 million for the second quarter, compared with a net profit of $3 million for the corresponding quarter. Revenue rose 7% to $1 billion for the second quarter from $933 million for the corresponding quarter, thanks to a 9% increase in cargo carried to 596,000 containers from 547,000. This was partly offset by a 2% drop in average cargo fees to $1,307 per container in the second quarter from $1,328 per container in the corresponding quarter.

Wholly-owned subsidiary IC Power Ltd., which incorporates OPC Rotem Ltd., which operates in Israel, and Inkia Energy Inc., which operates in Latin America, posted a net profit of $8 million in second quarter, down from $9 million in the corresponding quarter. First half revenue rose 24% to $277 million from $223 million in the corresponding half, which the company attributed to higher electricity production at its Peruvian unit Kallpa, and to higher sales and prices in El Salvador.

Electric car venture Better Place LLC narrowed its loss to $8 million for the second quarter from $31 million for the corresponding quarter. Israel Corp's joint car venture in China, Chery-Quantum LLC's second quarter loss rose to $32 million for the second quarter from $1 million for the corresponding quarter.

Israel Corp's public subsidiaries include Israel Chemicals Ltd. (TASE: ICL), Oil Refineries Ltd. (TASE:ORL), and Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM).

Israel Corp's share price fell 11.4% in morning trading to NIS 2,890, giving a market cap of NIS 22 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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