Israel Corp. (TASE: ILCO) reported first quarter net profit, after minority interests, of NIS 195 million. The figure was 51% lower than the corresponding quarter.
Total net profit, including minority interests, was NIS 612 million. In the fourth quarter of 2008 the holding company posted a net loss. Israel Corp. CEO Nir Gilad said that the move to profit was "based on a sharp change in financing expenses for the group, and on a significant drop in one time expenses that were recorded in the previous quarter. This was done despite a worsening of market conditions in general, and in the shipping sector in particular."
Revenue fell 36% compared with the corresponding quarter, and reached NIS 10.4 billion. The drop in revenue resulted from a drop in the price of oil and in a drop in quantity of sales at subsidiary Israel Chemicals Ltd. (TASE: ICL).
In dollar terms, the group's quarterly profit reached $48 million. Zim Integrated Shipping Services Ltd. lost $117 million in the quarter, much larger than the $29 million loss in the corresponding quarter. Zim revenue fell to $622 million, from $1.04 billion in the corresponding quarter.
Israel Corp is a holding company, with stakes in significant companies in Israel. Israel Chemicals Ltd. (TASE: ICL) contributed profit of $84 million, Oil Refineries Ltd. (TASE:ORL) contributed $34 of profit, while Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) contributed a loss of $11 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2009
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