14 Nov 13. Elbit Systems Ltd. (the “Company”) (NASDAQ:ESLT, TASE: ESLT), the international defense electronics company, reported its consolidated financial results for the third quarter ended September 30, 2013. In this release, the Company is providing its usual US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors with a more comprehensive understanding of the Company’s business results and trends. Unless otherwise stated, all financial data presented is US- GAAP financial data. Third quarter 2013 results: Revenues were $730.6m in the third quarter of 2013, as compared to $677.5m in the third quarter of 2012.The main contributors to the Company’s revenues were the Airborne and the C4ISR systems areas of operations. Gross profit was $207.4m (28.4% of revenues) in the third quarter of 2013, as compared to $191.5m (28.3% of revenues)in the third quarter of 2012. The non-GAAP gross profit in the third quarter of 2013 was $212.9m (29.1% of revenues), compared to $196.6m (29.0% of revenues) in the third quarter of 2012. Research and development expenses, net were $54.0m (7.4% of revenues) in the third quarter of 2013, as compared to $50.7m (7.5% of revenues) in the third quarter of 2012. Marketing and selling expenses were $61.9m (8.5% of revenues) in the third quarter of 2013, as compared to $59.0m (8.7% of revenues) in the third quarter of 2012. General and administrative expenses, net were $30.5m (4.2% of revenues) in the third quarter of 2013, as compared to $32.7m (4.8% of revenues) in the third quarter of 2012. Operating income was $61.1m (8.4% of revenues), as compared to $49.0m (7.2% of revenues) in the third quarter of 2012. The non-GAAP operating income in the third quarter of 2013 was $72.3m (9.9% of revenues), as compared to $61.0m (9.0% of revenues) in the third quarter of 2012. The increase in the operating income was mainly due to cost savings and improved efficiency measures taken by the Company.
14 Nov 13. Serco shares sag as it predicts 2014 profits fall. Serco underlined the effects of a series of investigations into its UK government contracts as it warned that profits would fall next year, sending its shares lower in early London trading. The UK outsourcing group, which runs facilities from prisons and hospitals to air traffic control towers, said the government’s moratorium on new contracts, combined with the expiry of existing contracts, would lead to profit being “moderately lower” in 2014 compared with this year. The news caps a turbulent phase in the group’s history. Chris Hyman unexpectedly quit as chief executive last month after 11 years at the helm. Ministers have put new contracts to Serco on hold while the group is investigated over a series of scandals, including a Serious Fraud Office inquiry into allegations it overcharged taxpayers for tagging offenders. The company has agreed with the government that it will carry out a three-month period of “corporate renewal” and has appointed Lord Gold to review its business practices. The Financial Times reported on Wednesday that Serco had over £4bn worth of contracts with the Ministry of Defence, highlighting the group’s reliance on its biggest customer. Serco said its relationship with the government had been “impacted by the issues arising on certain contracts with the Ministry of Justice”, which had led to delays in previously expected contract awards. This had compounded a “lower level of discretionary spending and ad hoc project work” with UK government departments. Ed Casey, acting chief executive, said: “The UK government audits and reviews are ongoing and we remain firmly committed to rebuilding the confidence of our UK government customer.” The company expects adjusted operating profit in 2013 to be broadly similar to the £307m achieved in 2012 and its operating margin would be slightly lower than the 6.4 per cent reported last year. Graham Brown, an analyst at Canaccord Genuity, said of Thursda