Israel Corp Sees Wider Loss Due to Struggling Shipping and Electric Car Units

Israel Corp. Ltd. one of Israel's largest holding companies, Thursday said that losses and lower profits in its subsidiaries had led to a significantly wider loss in fourth-quarter 2012.
Israel Corp. said its fourth-quarter net loss totaled $306 million compared with a net loss of $51 million for the same period in 2011, due mainly to growing losses at its shipping and electric car subsidiaries. Revenue was $2.54 billion in the same period, down from $2.8 billion in 2011.
Wholly-owned shipping unit Zim Integrated Shipping Services had a net loss of $239 million, compared with a loss of $151 million in 2011, due to continuing reduced business in the midst of a slow global economy.
Israel Corp.'s electric car venture, Better Place-which has seen several changes in management in recent months-recorded a net loss of $231 million, compared with $59 million in the fourth quarter of 2011.
One of the corporation's main cash drivers, Israel Chemical Ltd. (>> Israel Chemicals Limited) also saw its net profit fall to $210 million from $370 million in the fourth quarter of 2011, mainly because of lower sales of potash, a key ingredient in agricultural fertilizer.
For the year as a whole, Israel Corp.'s net loss totaled $146 million, compared with a net profit of $155 million in 2011. Revenue was $11.5 billion, compared with $11.6 billion.
At 1054 GMT, shares of Israel Corp. were down 30 shekels ($8.10), or 1.07%, at ILS2,785.00, in a lower Tel Aviv market.
Source: Dow Jones