Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) has reported its financial results for the second quarter and first half of 2020 including its highest ever profits.
Revenue in the second quarter of 2020 was $1.060 billion, up 7.6% from $985 million in the corresponding quarter of 2020. Revenue in the first half of the year was $2.087 billion, up 4.6% from $1.986 billion in the first half of 2019. Revenue of the military group rose to $1.706 billion in first half of 2020 compared with $1.448 billion in the first half of 2019 but revenue of the aviation group decreased to $612 million in the first half of 2020 from $721 million in the first half of 2019.
IAI's net profit in the second quarter was $48 million, up 33% from $36 million in the corresponding quarter of 2019 and net profit in the first half of 2020 was $82 million, up 64% from $50 million in the first half of 2019.
Israel Aerospace reported an order backlog worth $13.2 billion, representing about 3.4 years of operations. The Company's free cash flows totals about $1.1 billion.
IAI chairman Harel Locker said, "The excellent business results of the first half of the year, achieved despite the difficulties posed by the global coronavirus crisis, are the outcome of IAI's recent reinvented focus. As a company whose majority of products are exported, we faced various challenges in the supply chain from the beginning of the first half of the year and already in December 2019. Despite these challenges, owing to employee mobilization and careful executive management efforts, IAI was able to reach a historical record in financial results in the first half of 2020. We will continue to lead IAI towards full realization of its immense business and technological potential."
IAI president and CEO Nimrod Sheffer said, "In this quarter IAI marks good results despite reduced activities in the Aviation Group. The increase in sales, the improvement in the business parameters of the Military Groups, and the continued provision of services to our customers around the world reflect the unwavering commitment of the company's employees and managers to its success. We are well aware of the serious ramifications of the global crisis on the Aviation Group and have prepared ourselves as an organization to the upcoming challenges in this industry.
He added, "In the midst of the coronavirus pandemic, we were able to reach technological, business, and management feats: we have developed unique technologies for combatting the coronavirus, closed major deals such as the lease of the Heron UAVs to Greece, completed the manufacture of wings for the T-38 aircraft, signed a major contract for adapting business jets to intelligence missions, completed the conversion of passenger jets to cargo configuration for DHL, and achieved the accelerated development of the national communication satellite, the Dror-1. We have successfully completed an operational dual firing trial with the LORA Weapon System and a very successful launch of the Ofek-16 satellite. Moreover, IAI climbed from the eighth place to the second place in DBI's ranking of Israel's 100 employers of choice and recently learned of winning the Israel Defense Prize, in addition to a chain of awards won by the company over the years for its contributions to homeland defense."
"We also view the issue of sustainability as a major part of our long-term strategy and growth and in recognition thereof, we received a Platinum Plus rating by the Maala Index for corporate responsibility. IAI will continue to lead Israel's homeland defense industries towards more achievements and feats for the security and prosperity of the State of Israel."
Published by Globes, Israel business news - en.globes.co.il - on August 10, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020