Israel Aerospace Industries (IAI) posted another record quarter in the first quarter of this year. Net profit jumped 86% in comparison with the first quarter of 2021 to $78 million. Operating profit rose 58% to $106 million (8.8% of sales) from $67 million (6.6% of sales).
The company's profit was boosted by one-time revenue from one of the deals by the company, but even without that, profit rose substantially. Another factor was a large sale to Morocco in December after the visit there by IAI chairperson Amir Peretz, who had just taken up the post, and Minister of Defense Benny Gantz.
First quarter sales grew by 18% to $1.2 billion, and the company's orders backlog reached $14 billion. 70% of sales, worth $863 million, were export sales.
Quarterly EBITDA rose 34% from $120 million to $161 million.
Worthy of note is the switch by the Aviation Group from a net loss of $8 million in the corresponding quarter to a net profit of $7 million in the current quarter.
IAI's finance expense was cut in half from $16 million in the corresponding quarter to $8 million in the current quarter.
The net tax expense in the first quarter of this year was $22 million, which compares with $10 million in the corresponding quarter of 2021. The company points out that it pays companies tax at the full rate of 23%, with no benefits under the Law for the Encouragement of Capital Investment, since it is wholly owned by the state. The offering to the public of part of the shares in the company due to take place this year will enable IAI to claim a substantial tax benefit.
Published by Globes, Israel business news - en.globes.co.il - on May 19, 2022.
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