Elbit Systems posts strong revenue, profit growth

Bezhalel Machlis  photo: Tamar Matsafi
Bezhalel Machlis photo: Tamar Matsafi

The Israeli defense company’s orders backlog totaled $7,329 million at the end of the second quarter, up from $6,818 million a year earlier.

Israeli defense company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported its second quarter results this morning.

Second quarter revenue totaled $818.3 million, which compares with $804.5 million in the second quarter of 2016.

Non-GAAP net profit attributable to the company's shareholders in the second quarter of 2017 was $68.8 million (8.4% of revenue), compared with $62.9 million (7.8% of revenue) in the second quarter of 2016.

GAAP net profit was $62.6 million (7.6% of revenue), compared with $54.1 million (6.7% of revenue) in the corresponding quarter.

Sales in Europe rose to 23.3% of total sales in the first half of 2017, compared with 17.1% in the first half of 2016.

Non-GAAP diluted net earnings per share attributable to the company's shareholders were $1.61 for the second quarter of 2017, compared with $1.47 for the second quarter of 2016. GAAP diluted earnings per share were $1.46, compared with $1.27 in the corresponding quarter.

Non-GAAP gross profit amounted to $248.3 million (30.4% of revenue) in the second quarter of 2017, compared with $244.0 million (30.3% of revenue) in the second quarter of 2016.

GAAP gross profit was $242.3 million (29.6% of revenue), compared with $236.1 million (29.4% of revenue) in the corresponding quarter.

Net research and development expenses were $67.1 million (8.2% of revenue), compared with $67.2 million (8.4% of revenue) in the corresponding quarter.

Non-GAAP operating income was $82.7 million (10.1% of revenue) in the second quarter of 2017, compared with $80.5 million (10.0% of revenue) in the corresponding quarter. GAAP operating income was $75.3 million (9.2% of revenue), compared with $69.9 million (8.7% of revenues) in the corresponding quarter.

The company’s backlog of orders at the end of the second quarter of 2017 totaled $7,329 million, up from $6,818 million a year earlier. Approximately 72% of the current backlog is attributable to orders from outside Israel. Approximately 57% of the current backlog is scheduled to be performed during 2017 and 2018.

Elbit Systems president and CEOBezhalel (Butzi) Machlis, said, “Our results represent ongoing improvements in revenue, profit and especially backlog, which grew strongly, particularly the longer-term component. Our increased focus on sales and marketing in recent quarters, as well as R&D, is enabling us to take advantage of the growth in the opportunities we see in many of our end markets. Furthermore, the diversified portfolio of technologies and products as well as a worldwide balanced market presence reflected by the breakdown of revenue streams and backlog, provides for the potential of continuing the long-term trend of growth and profitability.”

Elbit Systems' board of directors declared a dividend of $0.44 per share for the second quarter of 2017.

Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Bezhalel Machlis  photo: Tamar Matsafi
Bezhalel Machlis photo: Tamar Matsafi
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