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ZIM reduces second quarter loss to $67m

ZIM reduces second quarter loss to $67m
ZIM reduced its net loss in the second quarter to $67m, its final three-month reporting period prior to undertaking restructuring.

In the second quarter of 2014 ZIM reported a net loss of $67m compared to a loss of $97m in the same period a year earlier. Revenues in the second quarter of 2014 were $875m down from $977m in the same quarter in 2013.

ZIM said revenues were down due to the closing of lines, sale of a stake in container manufacturing plant in China and continued pressure on freight rates. In the second quarter of 2014 average container freight rates were down 3% at $1,206 per teu compared to the corresponding period a year earlier the line said.

Volumes were down 2% at 619,000 teu in the second quarter of 2014 compared to the same period a year earlier. ZIM noted it had a had terminated services from North Europe to the US in mid-2013 and Asia – North Europe at the beginning of the second quarter of 2014.

“The company is continuing execution of its strategic plan in order to continue improving its results, despite the persisting decline in freight rates around the world,” ZIM said.

“In spite of the uncertainty during the second quarter around the company’s ability to conclude the debt restructuring, the labor disturbances by company’s unions in Israel, shutting down of the company’s headquarters and the Sea Officers Union preventing a ship from sailing, ZIM managed to improve its results.”

On 16 July ZIM successfully concluded a $3.4bn debt-restructuring and Israel Corp reduced its stake from 100% to 32%.

TAGS: Containers Zim