Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) reported a record order backlog of $11.1 billion as of the end of the second quarter of 2017, up from $9 billion at the end of 2016. IAI said that the order backlog was boosted by new deals in the second quarter worth $2.9 billion including $2.4 billion in Indian deals.
Government owned IAI reported revenue of $859 million in the second quarter, down 2.1% from $877 million in the corresponding quarter of 2016. Net profit in the second quarter was $21 million, up from $6 million in the second quarter of 2016.
IAI President and CEO Joseph Weiss said, "In the second quarter, among others, the company signed mega deals for selling air defense systems to India totaling some $2.4 billion, including the largest transaction in the history of Israel's defense industries, which resulted in a record order backlog in the history of IAI. This accelerated business activity, combined with solid and material cash balances and positive cash flows, are an expression of the Company's business, corporate and technological growth and strength which I believe will continue to bear fruit. These accomplishments are first and foremost credited to the male and female employees of IAI whose dedication and professionalism allow us to pursue the path of achievements and growth."
He added, "We are continuing to experience the global trend of increasing homeland security budgets and the demand for advanced technological solutions that are tailored to the customer's needs. Accordingly, in order to be able to provide the optimal and most professional response to our customers, we continue to make sizeable investments in R&D and innovation."
"In the internal corporate front, the adoption of the growth plan in the Company has shown progress and has already led to a significant decrease in employee headcount, a reduction in costs and considerable operational improvement. Nonetheless, the company continues to face major business challenges, including enhanced competition in the target markets, mainly in the civilian market, and the effects of the sharp devaluation of the US Dollar exchange rate. IAI will continue to cope with the demands of the competitive market and the need for growing improvement procedures while constantly exploring new markets and groundbreaking solutions along with the adoption of structural and organizational processes and changes that will secure the company's ongoing growth."
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017