After a year of heavy media publicity thanks to the performance of its rocket defense system Iron Dome and successes in tests of its new interception system Magic Wand, Rafael Advanced Defense Systems Ltd. released its 2012 financials today. The state-owned defense company saw a fall in sales last year to NIS 6.8 billion, from NIS 7.1 billion in 2011. Rafael management said that the decline is sales was mainly a result of accounting policy that the company had introduced and was connected to a large project still at the stage of updating of the contract.
Rafael's net profit rose to NIS 569 million in 2012, compared with NIS 397 million in 2011, representing an increase of 43%. The company explained the rise by finance income and receipts and exits by subsidiaries of its RDC unit, a holding company that supports the development of civilian enterprises in healthcare. In 2012, Rafael paid the state a NIS 316 million dividend on its 2010 profits.
Rafael's order book expanded substantially in last year. It took orders of NIS 9.2 billion, bringing its orders backlog to an estimated NIS 16 billion. The company says that at least 65% of its orders are for export. Its product range is varied, and includes one product that is being snatched up like hot cakes by Western militaries: the Spike family of anti-tank missiles, in its various versions.
Last year, Rafael completed the acquisition of a company in Brazil, a move that is supposed to help it establish itself in a country where the potential for sales of defense systems is considered high. "Rafael will continue to develop through mergers, acquisitions, and expanded collaborations in Israel and around the world.," Rafael CEO Yedidia Yaari said today. "In order to be able to continue growing," Yaari added, "we have decided to start implementing a restructuring plan that will allow us to exploit the company's capabilities better and to be better prepared to meet national and international challenges."
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2013
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