For the first time in its history, Israel Aerospace Industries Ltd. (IAI) exceeded $4 billion in new contracts signed in a single year. The company signed contracts worth an aggregate $4.09 billion in 2006, 22% more than the $3.4 billion signed in 2005. IAI predicts that the momentum in its contracts, as well as its profits, will continue in 2007.
IAI will reportedly post a net profit of $110-150 million in 2006, with the exact amount dependent on severance payments to early retirees.
IAI’s management today disclosed that the company’s exports rose strongly in 2006, compared with the year before. The company signed $3.6 billion in export contracts, 88% of total contracts, compared with $2.7 billion in exports contracts in 2005, 80% of total contracts for that year.
The proportion of IAI’s civilian business grew strongly in 2006 at the expense of its military business. Civilian contracts totaled $1.8 billion, 45% of total contracts, 26% more than the $1.45 billion in 2005. Important contracts last year included a $300-400 million contract with the Indian Defence Research and Development Laboratories (DRDL) to develop an advanced version of the Barak Ship Point Defense Missile System, the Barak 8. IAI also signed a $230 million unmanned aerial vehicle (UAV) deal with India and a $45 million UAV contract with Australia.
Published by Globes [online], Israel business news - www.globes.co.il - on January 9, 2007
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