Qioptiq logo Raytheon

BUSINESS NEWS

16 Nov 11. Elbit Systems Ltd. (NASDAQ and TASE: ESLT), the international defense electronics company, reported its consolidated financial results for the third quarter ended September 30, 2011. In this release, the Company is providing its US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive understanding of the Company’s business results and trends. Unless otherwise stated, all financial data presented is GAAP financial data. Joseph Ackerman, President and CEO of Elbit Systems, commented: “The quarter’s results represent continued year over year growth in backlog, as well as improvements in margins. These results are due, among other factors, to our success in harvesting the synergies from recent acquisitions and we expect to continue to take advantage of opportunities in cost rationalization, savings and avoidance of duplicating effects among our subsidiaries. Our geographical spread and our diversified activities enable us to adjust ourselves to changing trends in the global markets, and we are successfully growing in regions with expanding potential like South America and Asia-Pacific. During the quarter we reported a number of important orders, and our backlog continued its growth trend for the sixth consecutive quarter.” Third quarter 2011 results: Revenues in the third quarter of 2011 were $663.7m, as compared to $649.9m in the third quarter of 2010. The leading contributors to the Company’s revenues were the C4ISR Systems and Airborne areas of operations. Gross profit amounted to $204.1m (30.8% of revenues) in the third quarter of 2011, as compared to $197.9m (30.5% of revenues) in the third quarter of 2010. The improved gross profit rate was mainly a result of a mix of programs sold during the third quarter of 2011. The non-GAAP gross profit in the third quarter of 2011 was $211.6m, (31.9% of revenues), compared to $203.5 m (31.3% of revenues) in the third quarter of 2010. Research and development expenses, net were $55.5m (8.4% of revenues) in the third quarter of 2011, as compared to $56.1m (8.6% of revenues) in the third quarter of 2010. Marketing and selling expenses were $58.4m (8.8% of revenues) in the third quarter of 2011, as compared to $59.1m (9.1% of revenues) in the third quarter of 2010. General and administrative expenses were $34.0m (5.1% of revenues) in the third quarter of 2011, as compared to $30.2m (4.7% of revenues) in the third quarter of 2010. Operating income was $56.2m (8.5% of revenues), as compared to $52.4m (8.1% of revenues) in the third quarter of 2010. The non-GAAP operating income in the third quarter of 2011 was $70.3m (10.6% of revenues), as compared to $63.3m (9.7% of revenues) in the third quarter of 2010. Financial expenses, net were $3.1m in the third quarter of 2011, as compared to financial expenses, net, of $5.5m in the third quarter of 2010. Financial expenses, net, were comparatively lower in the third quarter of 2011 due to income from currency hedging activities. Taxes on income were $9.8m (effective tax rate of 18.2%) in the third quarter of 2011, as compared to taxes on income of $4.8m (effective tax rate of 10.1%) in the third quarter of 2010. The change in the effective tax rate was attributable mainly to the mix of the tax rates in the various jurisdictions in which the Company’s entities generate taxable income. Equity in net earnings of affiliated companies and partnerships was $4.2m (0.6% of revenues) in the third quarter of 2011, as compared to $3.9m (0.6% of revenues) in the third quarter of 2010. Loss from discontinued operations, net in the third quarter of 2011 amounted to $15.2m. The amount reflects a net loss related to an impairment of held-for-sale investments acquired during 2010, as part of the acquisition of the Mikal group of companies. Net income attributable to non-controlling interests was net income of $3.2m in the third quarter of 2011, as compared to a net expense of $1.1m in t

Back to article list