Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) reported higher revenue and exports for the second quarter of 2011 but lower net profit.
Revenue was $938 million in the second quarter of 2011, up 12% from $839 million in the corresponding quarter of 2010. Exports were $767 million, up 16% from the corresponding quarter last year. Revenue from the military market was $673 million in the second quarter. Revenue from the civilian market was $265 million, up 36% from the corresponding quarter.
IAI reported that gross profit before costs associated with retirement of employees was $35 million in the second quarter, up 8% from $32 million in the corresponding quarter. Net profit for the second quarter was $33 million (4% of sales), down from $38 million (5% of sales) in the corresponding quarter.
R&D investment in the second quarter was $34 million (4% of sales), compared with $32 million (4% of sales) in the corresponding quarter.
IAI also reported an orders backlog of $8.9 billion, which is 30 months of work. Cash flow from operations was negative, totaling $ 127 million. The decrease in cash flow arose from an increase in debt of the Ministry of Defense and foreign customers.
Published by Globes, Israel business news - www.globes-online.com - on September 1, 2011
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