Rafael Advanced Defense Systems Ltd. reports slumping profits and orders, and warns that streamlining measures are in the offing.
Net profit fell to $111 million (NIS 397 million) in 2011 from $170 million (NIS 633 million) in 2010. The company attributed the drop to the capital gain from the sale of insulin pump developer Medingo Ltd. in 2010.
Sales rose slightly to $1.98 billion (NIS 7 billion) in 2011 from $1.85 billion in 2010, and the orders backlog was NIS 13.2 billion at the end of 2011.
Rafael's best known products include the Iron Dome short-range missile interceptor system and the Trophy antitank missile system. The company has 6,500 employees.
Rafael's executives said that 2011's profits were achieved from development, manufacturing, and marketing activities for air superiority, antitank protection systems, air-to-ground missiles, antimissile systems, tactical missiles, and electo-optical systems. Rafael president and CEO Yedidia Yaari said, "2011 was a good year for Rafael, as it continues to offer solutions to its customers worldwide."
Yaari warned, however, that global economic shocks were liable to reduce orders from the Ministry of Defense and from foreign customers, affecting the company's orders backlog. "This requires us to take streamlining measures to maintain our financial soundness on one hand and to continue our marketing efforts, especially exports, on the other."
Rafael chairman Ilan Biran said, "The global economic reality requires us to take measures that will enable us to continue to grow and maintain the company's soundness, given the slowdown and recession in the world."
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2012
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