Zim back in black with US$37 million third quarter profit

ISRAELI flag carrier Zim returned to profitability in the third quarter with a net profit of US$37 million, reversing a year-on-year loss of $208 million.

Revenue increases came from cargo volumes, higher freight rates, income from uncompleted voyages and revenues from subsidiaries. Freight rates rose 46 per cent on average from $1,027 per TEU year on year to $1,496 in the third quarter 2010. Some 596,000 TEU were carried in the third quarter, compared to 455,000 during the comparable period last year.

"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 significant," said Zim chairman Nir Gilad, also CEO of Zim's parent, Israel Corp.

"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," said Mr Gilad.

Zim posted positive cash flow from operations of $191 million in the third quarter. This is the first time since the economic crisis that Zim has reported positive operating income, said a statement accompanying the results.

Zim's quarterly operating income was $268 million against last year's $303 million. EBITDA for the third quarter totalled $145 million against a negative EBITDA of $109 million in 2009.
(Source:www.schednet.com)