Better Place and Zim widen Israel Corp's loss

Electric car venture Better Place doubled its loss in 2012, while $133 million was set aside for shipping company Zim's debt settlement.

Israel Corporation (TASE: ILCO) this morning reported widening losses for both the fourth quarter and full-year 2012.

The company reported stable revenue of $21.77 billion in 2012 but a loss of $146 million compared with a profit of $155 million in 2011. The company lost $306 million in the fourth quarter of 2012 compared with a loss of $51 million in the corresponding quarter of 2011.

If not for a one-time write off of $133 million set aside for the debt settlement of Zim Integrated Shipping Services Ltd., and one-time loss of $67 million due to a fall in value of electric car venture Better Place Inc., Israel Corp. would have made a profit of $54 million in 2012.

Although Zim revenue rose 5% to $3.96 billion in 2012, the shipping company finished the year with a loss of $433 million compared with $397 million in 2011. In the fourth quarter alone Zim lost $239 million compared with $151 million in the corresponding quarter of 2011.

Better Place continued to sink in the wake of the management upheaval with a loss of $454 million in 2012, more than double the loss of $213 million in 2011. Better Place lost $251 million in the fourth quarter of 2012 alone compared with a $73 million loss in the corresponding quarter of 2011.

CEO Nir Gilad earned NIS 10.16 million in 2012 of which NIS 4.04 was his salary, and NIS 6.12 million was share-based payments. Chairman Amir Elstein earned NIS 7.15 million last year of which NIS 3.16 million was in salary and NIS 3.55 million in share-based grants.

Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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