ISRAEL flag carrier Zim narrowed its net loss in the
first quarter by 45 per cent to US$62 million as its pre-tax profit advanced
year-on-year from a $6 million loss to $29 million gain, drawn on revenues of
$867 million, down 5.8 per cent.
The troubled, indebted company, enjoyed a two per cent
first quarter year-on-year volume increase to 617,000 TEU, but suffered a five
per cent average freight decline to $1,213 per TEU.
"The results show continued improvement quarter on
quarter and are in line with the industry average," the company said.
Zim's $3 billion restructuring will produce great
improvements, said the company. The plan involves a $1.4 billion debt for
equity exchange with creditors and its still subject to creditor and
shareholder approval.
"With a dramatically improved balance sheet and cost
structure, and the support of a committed workforce, the company is poised for
a dramatic improvement in profitability over the coming year," said the
company statement.
But Zim CEO Rafi Danieli said "employees must take
their share of responsibility for the company's future and join in the effort
to successfully complete the restructuring. Their co-operation is vital".
Zim said labour contracts signed when the company was a
state-owned enterprise, now need to "address economic realities and the
fiercely competitive environment".
As reported earlier, 99.7 per cent shareholder Israel
Corp will inject $200 million, but it will reduce its stake to 32 per cent.
Source : HKSG.
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