Zim extends recovery with US$54 million profit in 2010

That is compared to a loss of US$432 million in 2009. Zim concluded the fourth quarter with a net income of US$96 million. Revenue was up 43%
 
In 2010, Israel’s Zim Integrated Shipping Services experienced a positive turnaround, reporting a net income of US$54 million compared to a loss of US$432 million in 2009. Zim’s EBITDA (earnings before interest, taxes,
depreciation, and amortization) in 2010 amounted to US$403 million compared with negative $518 million in 2009, an improvement of $921 million.
 
Zim concluded the fourth quarter with a net income of US$96 million, compared to a profit of US$81 million in the same quarter last year.  Zim’s revenues in 2010 totaled US$3,717 million compared to a total of US$2,449 million last year.
 
According to Zim, the increase in revenue stems primarily from an increase in quantities carried, increased freight rates and increase in income from subsidiaries, mainly from a container production company.
 
Revenue was up 43% due to increase in freight rates as well as quantities shipped. During the fourth quarter the average freight rate was up 31% from US1,136to US1,485. The quantity of containers moved was up 14% from TEU 498,000 to TEU 566,000.
 
Nir Gilad, Zim’s Chairman and Israel Corporation’s CEO noted that “2010 was characterised by the recovery of the global shipping industry, which suffered the most severe crisis in history in 2009. “The industry has moved towards stability and growth. It should be noted, however, that there is still a large supply and volatility in the shipping market, and oil prices adversely affect companies operating in the industry.”