Israel Corporation lost NIS 30 million in the third quarter, compared with netting NIS 43.6 million for the third quarter of 2000.

The loss was generated by erosion of its holdings in Koor Industries (NYSE:KOR), resulting in a NIS 13.1 million write-down for the third quarter. For the nine months Israel Corp wrote down its ECI stake by NIS 32 million.

That aside, Israel Corporation also suffered from eroding results by its affiliated companies.

Revenue for the third quarter grew by 7% against the parallel to NIS 2.1 billion. But an increase of 11% in cost of sales cut gross profit by 8% to NIS 462.5 million.

Operating profit for the third quarter decreased 20% against the parallel to NIS 209.4 million, compared with NIS 262.8 million for the same period last year. The erosion is due to a NIS 20 million rise in sales, marketing, management and general costs.

Operating profit margin fell to 9.8%, compared with 13.2% for the parallel.

Losses were moderated by financing costs, which decreased by 25% against the third quarter of 2000 to NIS 33 million, compared with NIS 97.5 million for the parallel.

The share of the Israel Corporation in losses of affiliates was NIS 29.8 million, compared with earnings of NIS 54.2 million for the same period last year.

The affiliates are Israel Chemicals, Tower Semiconductor (Nasdaq:TSEM), shipping company Zim, and Oil Refineries (Bazan).

The Israel Corporation was especially hurt by Israel Chemicals, whose profit for the third quarter decreased to NIS 70.6 million, compared with NIS 131 million for the parallel. Zim¿s profit for the third quarter shrank by more than half against the parallel to NIS 20.6 million. Tower lost NIS 54.1 million for the third quarter, compared with a loss of NIS 3.3 million for the parallel. Oil Refineries lost NIS 70.6 million in the third quarter, compared with a profit of NIS 122.5 million for the third quarter of 2000.

The Israel Corporation lost NIS 17.4 million for the first nine months of 2001, compared with a profit of NIS 150.1 million for the parallel.

Revenue remained relatively stable at NIS 5.8 million.

The Israel Corporation is controlled by the Ofer brothers.