According to the report, posted a net profit of $21 million, compared with $65 million for the corresponding quarter of last year
Israel Corp. published its financial report for the first quarter of 2006 last week indicating that Zim Integrated Shipping Services Ltd. had an unsatisfactory first quarter.
Zim, according to the report, posted a net profit of $21 million, compared with $65 million for the corresponding quarter of last year. ( the 2005 first quarter profit included a one-time profit of $31 million resulted from the sale of ships).
During the first quarter there was no substantial changes in freight rates and in quantities shipped. Zim shipped 486,000 TEU's during the first three months period similar to the corresponding quarter of last year.
Zim’s financial statement clearly shows that the rise in fuel prices eroded its profits. In a statement issued by Israel Corp and Zim chairman Idan Ofer he noted that: “Despite the rise in the price of fuel and the fall in global shipping prices, Zim achieved reasonable profitability, in part thanks to continued implementation of management’s streamlining plan.”
Although revenue rose to $676 million for the first quarter from $657 million for the corresponding quarter of last year, the company’s gross profit fell to $57 million in the first quarter from $73 million. The company’s operating profit fell to $31 million from $49 million for the corresponding quarter.
