Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) reports strong revenue and profit growth for the first quarter of 2011. Revenue rose 11% to $855 million from $769 million for the corresponding quarter, and net profit rose 170% to $46 million from $17 million.
IAI increased sales in both military and civilian markets. The company also reported a capital gain from the sale of its 30% stake in avionics and electronic warfare systems developer Elisra Group to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) for $24 million.
Military sales rose to $628 million for the first quarter from $582 million for the corresponding quarter and civilian sales rose to $227 million from $187 million. The proportion of military sales declined to 73% of total first quarter sales from 76% of sales in the corresponding quarter, while the proportion of civilian sales rose to 27% from 24%.
Exports rose to $680 million (80% of total sales) for the first quarter from $624 million for the corresponding quarter, while domestic sales rose to $175 million from $145 million.
IAI reported a $16 million expense in severance compensation for 80 employees this year as part of the 2006 employee early retirement program. The retiring employees are from its unprofitable civilian aircraft division (Gulfstream corporate jets).
IAI's orders backlog totaled $8.6 billion at the end of March, 85% of which is for exports. Cash flow from operations totaled $76 million for the first quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2011
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