Israel Corporation's (TASE: ILCO) 2011net profit plummeted despite revenue growth, and it posted a loss for the fourth quarter. Full-year revenue rose 27% to $21.2 billion in 2011 from $16.7 billion in 2010, but net profit fell 68% to $151 million from $473 million. Despite the loss, the company will distribute a dividend of $120 million.
The company posted a net loss of $52 million for the fourth quarter, compared with a net profit of $161 million for the corresponding quarter of 2010.
Wholly-owned subsidiary Zim Integrated Shipping Services Ltd. was responsible for the drop in profits and fourth quarter loss. Zim posted a loss of $397 million in 2011, compared with a profit of $54 million in 2010, and it posted a loss of $96 million for the fourth quarter, compared with a profit of $151 million for the corresponding quarter.
Electric car venture Better Place LLC posted a full-year loss of $167 million, and a loss of $62 million for the fourth quarter. Israel Corp's joint venture with China's Chery Automobile Company Qoros Automobile Company posted a full-year loss of $108 million, and a loss of $13 million for the fourth quarter. Israel Corp. owns 31.5% of Better Place and 50% of Qoros.
Subsidiary Israel Chemicals Ltd's (TASE: ICL) net profit rose 48%, compared with 2010, to $1.51 billion, and its fourth quarter net profit rose 48%, compared with the corresponding quarter, to $370 million. Israel Corp. owns 52.5% of Israel Chemicals.
The salary cost of Israel Corp. CEO was NIS 21.1 million in 2011, and the salary cost of chairman Amir Elstein was NIS 15 million.
Israel Corp's share price fell 1.6% in early trading today to NIS 2,534, giving a market cap of19.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2012
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