(photo credit: Ariel Schalit/AP)
Israel Aerospace Industries Ltd. reported Tuesday that its orders backlog rose by $1.1 billion during the third quarter to $9b. pointing to a recovery of the global civil aviation market after a two-year slump caused by the economic crisis.
“Our products are appreciated by our customers, and we strive to develop new products that will open new international markets for us. The $9b. orders backlog ensures the company’s soundness over the coming years,” said IAI CEO Yitzhak Nissan.
IAI said that the increase in orders for the company’s G-550 Gulfstream executive jets, as well as foreign military orders, reflected the recovery in the global civial aviation market.
“The weakness of the dollar during the third quarter of 2010 greatly affected us, as most of our revenue is in dollars, and we’re dealing with the situation through currency hedges,” said IAI CFO Menashe Sagiv.
Sagiv added that the company paid a NIS 57 million dividend to the
state. IAI’s net profit rose 62% to $25m. for the third quarter from
$16m. in the corresponding quarter. Revenue rose 2% to $690m. for the
third quarter from $678m. for the corresponding quarter.
IAI attributed most of its improved financial condition to new orders during the past year.
These include a follow-on order from the Colombia Air Force for Kfir jet
fighters and delivery of an air-to-air refueling tanker. In addition,
IAI has also further consolidated its position as a key arms supplier to
the Indian armed forces, including a contract for the Barak-8 naval
longrange anti-missile and air defense system.
Military sales fell to $525m. for the third quarter from $537m. for the
corresponding quarter, while civilian sales rose to $165m. from $141m.
Asia remained IAI’s largest market in the third quarter, accounting for
$222m. in sales; followed by the US and Canada with $188m.; and Israel