Zim suffers heavy 2009 losses, sees 4Q recovery
The parent company of Israel-based container line Zim saw profits nosedive in 2009, with Zim a major culprit, according to press reports in Israel.
Zim's parent, Israel Corp., went from a profit of $320 million in 2008 to $6 million in 2009, with Zim contributing operating losses of $332 million during the year, according to a report by the Israeli news outlet Globes. For shareholders of the company, those losses were compounded by capital infusions they made to keep the line afloat in 2009.
However, Zim moved into the black in the fourth quarter of 2009, posting an $81 million operating profit during the last quarter, compared to a $199 loss in the same quarter in 2008. Its revenue and container volume during the fourth quarter increased over the third quarter, but increased fuel costs mostly offset those gains, the report said.