Israel Corp loss grows on poor shipping, chemical units' results

Time:2014-03-28 Browse:57 Author:RISINGSUN
Israel Corp, one of Israel`s largest holding companies, reported a wider loss in the fourth quarter due to a smaller profit at its chemicals unit and a larger loss at its shipping subsidiary.


Israel Corp said on Thursday it posted a quarterly net loss of $406 million, compared with a $306 million loss a year earlier.


Shipping unit Zim, which has been hurt by tough economic conditions, lost $282 million in the last three months of 2013, wider than $238 million the prior year. Excluding extraordinary expenses, Zim`s loss was $113 million.


Zim, the world`s 17th largest shipping industry with a 2 percent market share, is in the middle of a financial restructuring process. In January, the firm agreed to a deal with most of its creditors that will see part of its debt swapped for shares and drop Israel Corp`s stake to less than one-third.


The deal will slash Zim`s overall liabilities to $1-$1.5 billion from about $3 billion.


During the fourth quarter, Zim`s revenue fell to $888 million from $981 million, due to a 13 percent decline in average freight rates.


Zim also said it is in advanced negotiations with Israel`s government regarding the cancellation of the state`s "golden share", while maintaining the government`s interests in a way accepted by the defence ministry.


Chemicals unit Israel Chemicals (ICL), the most lucrative holding and the world`s sixth-largest potash producer, earned $195 million excluding one-off items, down 21 percent over the previous year.


Israel Corp last week said it was examining the sale of up to 7 percent of ICL. It currently owns 52.3 percent of ICL, which is planning a New York Stock Exchange listing.


Israel Corp is also the parent of chipmaker TowerJazz and Oil Refineries, and holds a stake in Chinese-Israeli carmaker Qoros.


TowerJazz posted a narrower quarterly profit , while the loss at Oil Refineries narrowed.


Qoros, a joint venture between Israel Corp and Chery Automobile Co, posted a quarterly loss of $144 million, compared with $55 million a year earlier. (Reporting by Steven Scheer)