Elbit Systems reports higher Q2 revenue and profit

Bezhalel Machlis

The Israeli defense electronics company also saw its backlog of orders rise to $6.305 billion.

Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has reported a rise in revenue and profit for the second quarter of 2015.

Revenue in the second quarter of 2015 was $749.6 million, up 6.7% from $702.6 million in the second quarter of 2014, mainly due to growth in revenues of Land Systems to Asia Pacific.

Gross profit amounted to $219.3 million (29.2% of revenue) in the second quarter of 2015, up from $199.4 million (28.4% of revenue) in the second quarter of 2014. The non-GAAP gross profit in the second quarter of 2015 was $224.7 million (30% of revenue), up from $204.8 million (29.1% of revenue) in the second quarter of 2014. The increase in the gross profit rate was mainly due to the mix of programs sold in the quarter.

Net profit attributable to the company's shareholders in the second quarter of 2015 was $45.3 million (6% of revenue), up from $43.9 million (6.2% of revenue) in the second quarter of 2014. The non-GAAP net profit in the second quarter of 2015 was $53.5 million (7.1% of revenue), up from $52.6 million (7.5% of revenue) in the second quarter of 2014.

Diluted net earnings per share attributable to the company's shareholders were $1.06 for the second quarter of 2015, compared with diluted net earnings per share of $1.03 for the second quarter of 2014. The non-GAAP diluted earnings per share in the second quarter of 2015 were $1.25 compared with $1.23 for the second quarter of 2014.

Elbit Systems backlog of orders as of June 30, 2015 was $6.305 billion up from $6.174 billion as of June 30, 2014. 69% of the current backlog is attributable to orders from outside Israel and 60% of the current backlog is scheduled to be performed during the second half of 2015 and 2016.

Elbit Systems president and CEO Bezhalel Machlis said, “We are pleased that the growth in our backlog over the last two years has led to our current positive revenue growth and that the past quarter saw growth both in revenue and in backlog. In addition, we see a continuation of solid performance in geographic regions with strong emerging defense requirements, which have been a strategic focus for us in recent years, particularly Asia-Pacific and Latin America, and which together accounted for 39% of our revenues in the quarter."

He added, "We also continue to focus on adapting ourselves to market trends in order to meet future customer needs. Just after the close of the quarter, we completed the acquisition of the Cyber & Intelligence division of Nice Systems, and our recently established subsidiary Cyberbit is in the process of integrating the acquired operations into our organization. The acquisition is an important part of our strategy to enhance our cyber capabilities, a sector in which we see strong growth potential over the coming years.”

Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Bezhalel Machlis
Bezhalel Machlis
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