Zim’s: $37 million net income for the third quarter

Revenues for the third quarter were $1,054 million. Israel Corporation CEO: The improvement in the global trade conditions is an important factor contributing to Zim’s strong results in the third quarter
 
Israel Corporation published today the financial results for the third quarter of 2010, showing continued positive results for ZIM. 
 
Zim finished the third quarter with an EBITDA of $145 million compared to a negative EBITDA of $109 million in the same quarter last year.
 
Zim’s net income for the quarter was $37 million, as opposed to a loss of $208 million for the same quarter of last year.
 
Cash flow from operating activityin the first nine months amounted to $268 million, compared to cash flow from operating activityin the corresponding period of last year of approximately $303 billion, i.e. an increase in cash flow from operating activityof approximately $571 million.
 
Cash flow from operating activityin the third quarter totaled $191 million, compared to a cash flow of $102 million dollars used for operating activities in the same quarter last year, i.e, an increase in cash flow from operating activity of $293 million.
 
Revenues for the third quarter were $1,054 million compared to $596 million in the comparable quarter of last year, an increase of approximately 77%. The increase in revenues resulted primarily from a growth in quantities of cargo carried, higher freight rates, and income from other services.
 
The average freight rate per container increased in the third quarter by 46%, from $1027 per container in the same quarter of last year, to $1496 per container.
 
Approximately 596,000 TEU’s were carried in the third quarter, compared to 455,000 during the comparable quarter of 2009. 
 
In the first 9 months of this year, ZIM carried 1.653 million containers compared to 1.302 Million containers last year, an increase of approximately 27%.
 
During the third quarter there was a 23% increase in cargo handling costs. The sharp rise in global fuel prices increased the fuel costs by 50%, while on the other hand, ship charter costs decreased by 14% compared to the same quarter last year.
 
Zim’s operating income for the third quarter totaled approximately $96 million as opposed to an operating loss of $153 million for same quarter last year.
 
At the end of July 2010, Zim took delivery of two mega ships, one of 8200 TEU’s and the other of 10.000 TEU’s. This ended the first phase of the newbuilding plan and completed the purchase of eight mega ships.
 
In November 5, 2010 Zim sold its stake in the container terminal in Nigeria, and the purchaser, a Chinese company, paid for the deal an amount of $154 million. As a result of this transaction, Zim is expected to record a gross profit of $120 million (before taxes).
 
In September 26 2010, S&P announced that it raises Zim’s bonds’ rating to ilBB+ with a positive outlook.
 
Nir Gilad, Zim’s Chairman and Israel Corporation CEO said that “The improvement in the global trade conditions is an important factor contributing to Zim’s strong results in the third quarter. The efficiency measures taken by the company are also beginning to bear fruit, and their contribution to the company’s positive results are very significant. The improvement in market conditions is very encouraging, however it should be remembered that the market has not yet reached full stability and that certain volatility in the shipping industry is possible".