Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) today reported that its orders backlog rose by $1.1 billion during the third quarter to $9 billion. IAI CFO Menashe Sagiv said that the company paid a NIS 57 million dividend to the state.
IAI's net profit rose 62% to $25 million for the third quarter from $16 million for the corresponding quarter. Revenue rose 2% to $690 million for the third quarter from $678 million for the corresponding quarter.
Military sales fell to $525 million for the third quarter from $537 million for the corresponding quarter, while civilian sales rose to $165 million from $141 million. Asia remained IAI's largest market in the third quarter, accounting for $222 million in sales; followed by the US and Canada with $188 million; and Israel with $137 million.
IAI's executives said that the company's favorable financial figures reflected recovery of the global civil aviation market after a two-year slump caused by the economic crisis. The increase in orders for the company's G-550 Gulfstream executive jets, as well as foreign military orders, reflected this recovery.
IAI attributes most of its improved financial condition to new orders during the past year. These include a follow-on order from the Colombia Air Force for Kfir jet fighters and delivery of an air-to-air refueling tanker. IAI has also further consolidated its position as a key arms supplier to the Indian armed forces, including a contract for the Barak-8 naval long-range anti-missile and air defense system.
"Our products are appreciated by our customers, and we strive to develop new products that will open new international markets for us. The $9 billion orders backlog ensures the company's soundness over the coming years," said IAI CEO Yitzhak Nissan.
Sagiv cautioned, "The weakness of the dollar during the third quarter of 2010 greatly affected us, as most of our revenue is in dollars, and we're dealing with the situation through currency hedges."
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2010
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