Elbit Systems posts "solid year"

Bezhalel Machlis  credit: Assaf Shilo/Israel Sun
Bezhalel Machlis credit: Assaf Shilo/Israel Sun

CEO Bezhalel Machlis: We're well positioned to benefit from the growth in the defense sector around the world.

Defense company Elbit Systems (TASE: ESLT; Nasdaq: ESLT) released its fourth quarter and full year 2021 financials this morning.

Fourth quarter revenue totaled $1.5 billion, 8.8% more than in the fourth quarter of 2020. Non-GAAP operating profit for the quarter was $120.1 million (8.0% of revenue), which compares with an operating profit of $113.8 million (8.3% of revenue) in the corresponding quarter of 2020. On a GAAP basis, operating profit for the fourth quarter was $107.3 million (7.2% of revenue), which compares with $104.6 million (7.6% of revenue) in the corresponding quarter.

On a non-GAAP basis, the company posted a quarterly net profit of $94.9 million (6.4% of revenue), which compares with $105.0 million (7.6% of revenue) in the corresponding quarter. On a GAAP basis, net profit was $8.2 million (0.5% of revenue), which compares with $67.8 million (4.9% of revenue) in the corresponding quarter.

For 2021 as a whole, Elbit Systems had revenue of $5.28 billion, representing a rise of 13.2% in comparison with revenue in 2020. Operating profit for the year on a non-GAAP basis was $450.8 million (8.5% (8.5% of revenue), which compares with $390.1 million (8.4% of revenue) in 2020. On a GAAP basis, operating profit last year was $418.5 million (7.9% of revenue), which compares with $325.7 million (7.0% of revenue) in 2020. The 2020 figure includes a $60 million expense for write downs of assets and stocks because of the coronavirus pandemic.

Net profit for 2021 on a non-GAAP basis was $367.6 million (7.0% of revenue), which compares with $318.5 million (6.8% of revenue) in 2020. On a GAAP basis, net profit last year was $274.4 million (5.2% of revenue), which compares with $237.7 million (5.1% of revenue) in 2020.

At the end of 2021, Elbit Systems has an orders backlog of $13.7 billion, up from $11 billion at the end of 2020. 72% of the backlog represents orders from customers outside Israel. 60% of the backlog is due to be filled in 2022 and 2023.

Elbit Systems president and CEO Bezhalel Machlis said, "2021 was a solid year for Elbit Systems, and the financial results indicate the sustained demand for our products and systems from customers around the world. Revenues increased by 13% year over year to $5.3 billion, and a record backlog of $13.7 billion provides us with good visibility. "Elbit Systems' 2021 results are an outcome of the significant investments we have made in recent years to develop leading technological capabilities and expand our positions in key global defense markets to sustain through cycle growth. "I believe that Elbit Systems is well positioned to benefit from the growth in the defense sector around the world."

On the Tel Aviv Stock Exchange this morning, Elbit Systems' share price is down by just over 1%. Over the past year, the company's share price has risen by nearly 65%.

Published by Globes, Israel business news - en.globes.co.il - on March 29, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Bezhalel Machlis  credit: Assaf Shilo/Israel Sun
Bezhalel Machlis credit: Assaf Shilo/Israel Sun
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