International defense company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported first quarter revenue of $656.9 million, 6.6% higher than the $616.1 million recorded in the first quarter of 2008.
The company pointed to increased sales of communication equipment and unmanned air vehicle systems to a number of customers.
Net profit attributable to the company rose 34.5% to $43.3 million, from $32.2 million in the first quarter of 2008. Diluted net earnings per share attributable to the company for the first quarter of 2009 was $1.02, as compared with $0.75 for the first quarter of 2008, an increase of 36%.
Elbit's orders backlog totaled $5.091 billion at the end of the quarter, compared with $5.03 billion as of December 31, 2008. Approximately 67% of the backlog relates to orders outside of Israel. About 72% of the company’s backlog as of March 31, 2009, is scheduled to be performed during the upcoming three quarters of 2009 and during 2010.
Elbit said that gross profit rose 22% to $208.3 million, compared with gross profit of $170.7 million in the corresponding quarter of 2008. The gross profit margin was primarily the result of a mix of projects performed with higher gross profit, and in part due to the strength of the dollar versus the shekel during the first quarter of 2009, which affected the labor costs incurred in shekels.
The strengthening of the dollar against the shekel also led to higher net financial expenses, which were $19 million in the quarter, compared with $4.6 million in the corresponding quarter. The stronger dollar affected the value of Elbit's currency hedge derivatives in shekels.
Elbit shares rose 1.8% to $56.50 yesterday, giving a market cap of $2.38 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2009
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