Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has reported strong results for the first quarter including a rise in revenue and profit and a record orders backlog. Elbit has previously reported that it does not expect the coronavirus to have any effect until the second quarter.
Elbit said today, "Some of our businesses have begun to experience certain disruptions due to government directed safety measures, travel restrictions and supply chain delays. To date, the financial impact to us of these disruptions has not been material."
Revenue in the first quarter of 2020 was $1.0712 billion, up from $1.0217 billion in the corresponding quarter of 2019. Non-GAAP net profit in the first quarter of 2020 was $72 million ($1.63 per share) up from $65.8 million ($1.54 per share) in the first quarter of 2019. GAAP net profit in the first quarter of 2020 was $63.6 million ($1.44 per share) up from to $50.5 million ($1.18 per share) in the first quarter of 2019.
Elbit's backlog of orders as of March 31, 2020 was 10.790 billion, up from $9.658 billion as of March 31, 2019. 63% of the backlog is for orders from outside Israel and 59% of the backlog is to be delivered during 2020 and 2021.
Elbit Systems CEO and president Bezhalel Machlis said, "In the first quarter we witnessed positive momentum across our markets, receiving more than $1.8 billion in orders from customers around the world. These orders contributed to a record backlog of $10.8 billion, growing by 8% over the last quarter of 2019, and providing Elbit Systems with good revenue visibility."
He added, "As a result of the Covid-19 pandemic, since March we have made significant changes to the way we work in order to protect the health and safety of our employees around the world, while at the same time maintaining business continuity in order to deliver our products and services to our customers as planned. This includes utilizing our healthy balance sheet to secure our supply channels and maintaining adequate levels of inventory to enable us to continue deliveries to customers."
Published by Globes, Israel business news - en.globes.co.il - on May 26, 2020
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