Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) today reported an 88% drop in profit and 18% rise in revenue in its results for the third quarter of 2011.
IAI reported $817 million revenue, up 18% from the corresponding quarter of 2010, and net profit of just $3 million, down from $25 million in the corresponding quarter last year.
IAI's operating profit in the third quarter amounted to $59 million, up from $5 million in the corresponding quarter. The rise in the shekel dollar exchange rate improved IAI's competitiveness and its business results and resulted in financing expenses of $44 million due to hedging and currency protection deals - but significantly reduced net profit.
IAI CEO Itzhak Nissan said, "In this quarter we continued with growth in company sales, which was expressed in the broad spectrum of products and the company's ability to supply broad scale systems solutions to its customers."
He added, "Despite the global economic slowdown the company has built up a backlog of $9 billion of new orders, which has enabled the company to cope with the fall in demand."
Published by Globes, Israel business news - www.globes-online.com - on November 23, 2011
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