The main measures in Israel Aircraft Industries’ (IAI) financial statements for 2003, due to be released next month, will show a decline of 6-7.5% in the company’s business in comparison with the previous year. New contracts fell by some $200 million, and sales fell by about $150 million, according to data that have reached “Globes”.
IAI’s new contracts totaled $2.8 billion last year, compared with $3 billion in 2002. The company will report an operating profit and a net profit for 2003, but lower than for 2002, when net profit was $33 million.
”2003 was a very tough year, IAI CEO Moshe Keret said at last week’s management meeting, before he set off for India to sign the deal for the sale of the “Phalcon” AWACS system. “2004 is starting with the expected signing of the Phalcon deal; this is a springboard for a better year” Keret added at the meeting.
Including the Phalcon deal with India, IAI’s orders backlog is expected to reach a record $5.7 billion. India will make a $250 million down payment for the system.
In the first nine months of 2003, IAI made a profit of some NIS 50 million.
”The Phalcon deal with India strengthens the marketing position of Israel’s defense industries for other deals, including South Korea’s tender for early-warning aircraft,” SIBAT director-general Gen. (Ret.) Yosi Ben-Hanan told “Globes” today.
Published by Globes [online] - www.globes.co.il - on March 7, 2004