Rafael (Israel Weapons Development Authority) this year will post a NIS 170 million loss, down 50% compared to its 1998 loss. This is the estimate of management. Next year, its first year of activity as a government corporation, Rafael will be able to reach break-even point.
Rafael's orders backlog at the end of 1999 will be NIS 4.1 billion, equivalent to 2.5 years of work, even without new orders. Sales this year will amount to NIS 2 billion, and new orders to NIS 2.3 billion. In 1998, the orders backlog stood at NIS 3.7 billion, sales totalled NIS 1.9 billion, and new orders flowed in to the tune of NIS 2.6 billion.
A senior management source told "Globes" that, in 2001, Rafael is expected to move to a profit. "Since 1995, when it was first decided to incorporate Rafael, we have lost more than NIS 1 billion", he said. "At the beginning of the decade, the cumulative loss amounted to NIS 2 billion. I expect future profitability to resemble that of IAI, as well as long-range profitability growth rate".
Rafael's general manager, Dr. Giora Shalgi, expressed satisfaction with the Prime Minister's decision. According to Shalgi, "the Prime Minister's decision is courageous, firm and clear, and supports Rafael's efforts over more than the past ten years. The Authority must become an economically sound industrial enterprise".
Published by Israel's Business Arena November 1, 1999