Defense electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported fourth quarter revenue of $697.9 million, up 18.1% compared with the $591.1 million recorded in the fourth quarter of 2007.
Net profit more than tripled to $105.3 million, compared with net profit of $31.9 million in the fourth quarter of 2007.
During the quarter, Elbit recorded a net profit of $74.4 million from the sale of its 41.3% stake in Mediguide, Inc. to St. Jude Medical. Elbit also listed several million dollars in other one-time expenses, such as an impairment charge of $10.5 million related to US firm Sandel Avionics in which it had invested 12.4 million in 2007, and an in-process R&D charge of $1 million related to its acquisition of wireless communications firm Innovative Concepts.
Excluding the one-time expenses, Elbit's net profit was $42.3 million, and earnings per share came to $1. This was slightly better than the figure analysts had expected of about $0.95 per share.
The company’s backlog of orders at the end of the year was $5.03 billion, compared with $4.87 billion at the end of the third quarter, and $4.62 billion at the end of 2007. Approximately 72% of the backlog relates to orders outside of Israel. Approximately 75% of the Company’s backlog as of December 31, 2008 is scheduled to be performed during 2009 and 2010.
Full year revenue rose 33.1% to $2.64 billion, compared to $1.98 billion in 2007.
Net profit for 2008 was $204.2 million, compared with $76.7 million in 2007.
Elbit Systems president and CEO Joseph Ackerman said, "2008 was a year in which we successfully integrated our acquisitions from prior years and began reaping the fruits of these activities. We have proven that our analysis of the direction of the global defense industry during the past few years was well founded, and we invested in areas which have become very relevant for our customers. Consequently, we now hold a substantial competitive and technological position in all these areas. We end 2008 in a very strong position as a global company and a well-known leader by our partners and customers. Looking ahead, we have primed our business for continued growth, well into the future. The sale of our holdings in Mediguide, strengthened our balance sheet and underscored that defense technology can be used in commercial applications.”
Elbit shares closed yesterday at $44.11, giving it a market cap of $1.86 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009