Israel Corp. (TASE: ILCO) reported a 49.5% drop in revenue in the second quarter, compared with the corresponding quarter. Revenue was $2.92 billion, compared with $5.81 billion in the second quarter of 2008.
The holding company also reported a net loss of $157 million, compared with a net profit of $268 million in the corresponding quarter of 2008. The net loss was larger than expected by analysts, who predicted a loss of $120-150 million.
Israel Corp. said that the net loss will cut more than NIS 100 million from the bottom line for Bank Leumi (TASE: LUMI), which owns 18% of the company.
Israel Corp.'s most significant holding, Israel Chemicals Ltd. (TASE: ICL), which in recent periods has been responsible for most of the parent company's revenue, was not able this time to cover the losses accrued by other units. Israel Chemicals recorded net profit of $152 million, down from $703 million in the corresponding quarter of 2008. The company contributed $81 million to the net profit of Israel Corp., compared with $368 million in the corresponding quarter.
The quarterly report also provided figures on another Israel Corp. holding, troubled Zim Integrated Shipping Services Ltd.. Zim, as expected, had a poor second quarter. A drop in overseas transport led to revenue falling 53% to $543 million. The quarterly net loss jumped 4.5-fold to $185 million, all of which dragged on Israel Corp.'s results, since it owns 100% of Zim.
Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2009
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