Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) today report record orders backlog of $10 billion, but flat profits on higher revenue. Full-year revenue rose 9% to $3.64 billion from $3.34 billion in 2012, and net profit rose to $75 million from $74 million.
All of IAI's military and commercial divisions achieved higher revenue in 2013, except for Bedek Aviation, which handles aircraft conversions and overhauls. Exports accounted for 73% of sales in 2013, down from 76% in 2012, mainly because of revenue from the Amos 4 communications satellite and its transfer to the client. Military sales accounted for 73% of total sales in 2013.
IAI's orders backlog reached $10 billion at the end of 2013, of which $3 billion is for sales in 2014. 85% of the backlog is for export.
Cash flow from operations rose to $551 million in 2013 from $274 million in 2012.
R&D expenses rose 15% to $180 million in 2013 from $156 million in 2012, and its proportion of sales rose to 4.9% from 4.7%.
Both IAI chairman Rafi Maor and CEO Joseph Weiss predict a challenging year in 2014. Maor warned, "The persistent decline in the US dollar exchange rate in 2013 and in early 2014 has affected, and is expected to continue to affect, the company's competitiveness. We also continue to face a slowdown in the company's commercial industry."
"We keep working on expanding and establishing our presence and activities in target markets, especially in Southeast Asia and in South America, with particular emphasis on all matters relating to acquisitions and global cooperation," said Weiss. "At the beginning of 2014, we conducted another successful test in the Arrow 3 system. During 2013 we successfully launched the Amos 4 satellite, and persuade the development of Amos 6 and of several observation satellites. IAI also continues to be at the forefront of Israel's multi-layered defense systems, with its leadership in radar systems which are part of the Arrow 2 and Arrow 3, David's Sling, and Iron Dome."
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014