Elbit Systems third quarter profit up 50%

Bezhalel (Butzi) Machlis

The Israel defense electronics company saw its orders backlog rise to $6.4 billion at the end of September.

Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today reported higher revenue and profit in its third quarter financial statement.

Revenue in the third quarter of 2015 was $764.8 million, up 5.8% from $722.7 million in the third quarter of 2014, a mainly due to growth in revenue of land systems to Asia-Pacific. This growth was partially offset by a decrease in C4ISR systems sold to Latin America customers.

Non-GAAP net profit in the third quarter of 2015 was $62.3 million (8.1% of revenue), up from $43.9 million (6.1% of revenues) in the third quarter of 2014. GAAP net profit in the third quarter of 2015 was $49.7 million (6.5% of revenue), up from $35 million (4.8% of revenue) in the third quarter of 2014.

Elbit System's backlog of orders as of September 30, 2015, totaled $6.4 billion up from $6.2 billion as of September 30, 2014. 68% of the current backlog is attributable to orders from outside Israel and 48% of the current backlog is to be performed during the last quarter of 2015 and during 2016.

Elbit Systems president and CEO Bezhalel Machlis said, "Our growth was driven in part by our ongoing increase in backlog, which has continued over the past three years, and by the acquisition of the cyber and intelligence business from Nice. The improvements in profitability were supported by our focus on efficient operations, leveraging synergies between our various divisions, as well as a favorable exchange rate environment.

He added, "Our results in the third quarter reflect a strong performance in Asia-Pacific, driven by increased defense spending in this region over the past few years. We are also witnessing a growing renewal of interest for our technologies and operational solutions in Europe, which creates the potential for future growth in this important market."

Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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Bezhalel (Butzi) Machlis
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