Elbit's Ackerman: Results continue stable trend

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Defense electronics company Elbit Systems reported EPS of $0.95 on revenue of $677.5 million for the third quarter.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), reported today its consolidated financial results for the third quarter today.

Revenue was $677.5 million in the third quarter of 2012, compared with $663.7 million in the third quarter of 2011. The company said that the main contributors to its revenue were the Airborne and C4ISR systems areas of operations.

Net profit attributable to the company's ordinary shareholders, was $39.5 million (5.8% of revenue) in the third quarter of 2012, compared with $36.5 million (5.5% of revenue) in the third quarter of 2011.

Non-GAAP net profit in the third quarter of 2012 was $49.4 million (7.3% of revenue), compared with $56.4 million (8.5% of revenue) in the third quarter of 2011.

Earnings per share were $0.95, compared with $0.85 in the third quarter of 2011. On a non-GAP basis, earnings per share were $1.18, compared with $1.31 in the third quarter of 2011.

The consensus analysts' estimate compiled by "Globes" and Psagot was for revenue of $713 million and earnings per share of $0.95.

Gross profit was $191.5 million (28.3% of revenue) in the third quarter of 2012, compared with $204.1 million (30.8% of revenue) in the third quarter of 2011. The non-GAAP gross profit in the third quarter of 2012 was $196.6 million (29.0% of revenue), compared with $211.6 million (31.9% of revenue) in the third quarter of 2011.

Research and development expenses, net, were $50.7 million (7.5% of revenue) in the third quarter of 2012, compared with $55.5 million (8.4% of revenue) in the third quarter of 2011.

Operating profit was $49.0 million (7.2% of revenue), compared with $56.2 million (8.5% of revenue) in the third quarter of 2011. Non-GAAP operating profit in the third quarter of 2012 was $61.0 million (9.0% of revenue), compared with $70.3 million (10.6% of revenue) in the third quarter of 2011.

The company's backlog of orders at the end of September 2012 was $5,529 million, compared with $5,465 million at the end of June, and $5,528 million at the end of December 2011. Approximately 74% of the backlog relates to orders outside of Israel. Approximately 54% of the company's backlog at the end of September is scheduled to be performed during the fourth quarter of 2012 and in 2013.

Operating cash flow was $61.0 million during the first nine months of 2012, compared with $11.2 million in the first nine months of 2011.

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Elbit Systems declared a dividend of 30 cents per share for the third quarter, the same as in the second quarter.

Elbit Systems president and CEO Joseph Ackerman said, "I am encouraged by the third quarter results, which reflect improvements in some parameters, resulting in part from our ongoing cost-reduction and cost-effectiveness efforts. Concurrently, the increase in backlog reflects Elbit Systems' long-term strategy achievements in increasing our customer base".

Ackerman added: "We have recently been awarded a number of important projects in Asia- Pacific and Latin America, some in new fields and others in new countries. We will continue to increase our activity in these markets as well as in additional potential growing markets in order to balance the situation in other markets that currently are experiencing decreasing budgets. The third quarter results continue our trend of stability and I believe that Elbit Systems is well positioned and prepared for the challenges ahead."

Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2012