Ofer Brothers subsidiary Israel Corp. (TASE: ILCO) today published its financial report for the third quarter of 2006. The company posted a net profit of NIS 223 million on NIS 7.2 billion revenue, compared with a net profit of NIS 563 million on NIS 6.6 billion revenue for the corresponding quarter of 2005.
The company’s subsidiaries include Israel Chemicals Ltd. (TASE: CHIM), Zim Integrated Shipping Services Ltd., and Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM). Two of these companies reported poor third quarter results: Israel Chemicals profit fell 34% from the corresponding quarter to $95 million, and Zim’s profit fell 54% to $39 million. On the other hand, Tower posted a profit of $39 million, compared with a loss of $55 million for the corresponding quarter, thanks to a one-time capital gain for its debt settlement with the banks and Israel Corp.
Zim posted a 5% increase in revenue to $778 million. The company said the average price for shipping was 2.7% less during the third quarter than in the corresponding quarter, but that the number of containers the company handled rose to 521,000 from 501,000 containers. Zim added that fuel prices were 29% higher in the third quarter than in the corresponding quarter of last year.
In September, Israel Corp.’s board approved the distribution of a NIS 59.5 million dividend, which was paid on October 4.
Israel Corp. has also announced plans to invest in CleanTech energy, and signed an MOU to acquire 49.9% of an Eastern European oil company for $132 million. The investment will be used to expand the company’s biodiesel production.
Published by Globes [online], Israel business news - www.globes.co.il - on November 26, 2006
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