Zim returned to profit well ahead of the timetable

For Q2/2010, Zim’s revenues increased by 72% compared to the Q2 of 2009 to $933 million, generating an operating income of $46 million, EBITDA of $87 million, and net income of $3 million
 
ISRAELI line Zim Integrated Shipping Services Ltd. has returned to profit well ahead of the timetable set out in its business plan after a year long battle to strip out costs and refocus the business. In Q2/2010 Zim posts operating income for the first time since the economic crisis, as well as net income. The company closed the cash flow gap versus its business plan prepared during the financial restructuring Financial Highlights:
 
Zim Posts First Operational Income Since the Economic Crisis:
 
For Q2/2010, Zim’s revenues increased by 72% compared to the Q2 of 2009 to $933 million, generating an operating income of $46 million, EBITDA of $87 million, and net income of $3 million. This is the first time since the economic crisis that Zim has reported positive operating income. These results were achieved not only owing to the dramatic improvement in the market conditions in the container shipping sector but also as a result of the internal efficiency program and structural changes implemented by the company.
 
Zim recorded positive cash flow from operating activities of $94 million during the second quarter. As such, it has fully closed the gap versus its business plan (approximately $70 million), which was reported at the beginning of the year.
 
Zim’s net income for the second quarter of 2010 was $3 million, as opposed to a loss of $186 million for the second quarter of 2009.
 
Mr. Nir Gilad, Zim’s Chairman and CEO of Israel Corp., stated, “Last year, Zim completed complex global financial restructuring,  the execution of which required, among other things, a massive injection of capital by Zim’s main shareholder, Israel Corporation. The dramatic improvement that Zim has achieved in the second quarter confirms that Israel Corporation’s strategic decision, which was in its own interest, to support ZIM by injecting this massive capital, which was also authorized by the General Assembly, has proven itself so far.
 
ZIM’s net income in Q2 totalled $3 million compared to a loss of $186 million in Q2 of 2009.
Revenues for the second quarter were $933 million compared to $543 million in the comparable quarter of 2009, an increase of approximately 72%. The increase in revenues resulted primarily from a growth in quantities of cargo carried, higher freight rates, income from uncompleted voyages and revenues from subsidiaries. In Q2/2010, average freight rates rose by 26% from approximately $1,057 per TEU in Q2/2009. to approximately $1,328.  Approximately 547,000 TEU were carried in the second quarter, compared to about 438,000 during the comparable quarter of 2009.
 
ZIM’s operating income for Q2/2010 totalled approximately $46 million as opposed to an operating loss of $224 million for Q2/2009.
 
ZIM’s EBITDA for the second quarter totalled $87 million as opposed to negative EBITDA of $188 million for the second quarter of 2009. Compared to the first quarter of 2010, ZIM’s revenues for the second quarter increased by approximately $190 million, (increase of about 25%,), together with an improvement of about  $129 million operating income and an improvement of about $85 million in the net income. Israel Corp., Zim holding company attributed the turnaround at Zim "not only to the dramatic improvement in the terms of trade in the global shipping industry, but also to the streamlining and restructuring measures that Zim is undertaking”.