Elbit Systems revenue jumps to nearly $2 billion
70% of the firm's backlog is for orders outside of Israel.
Globes' correspondent 11 Mar 08 10:09
Military electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today reported its consolidated results for the fourth quarter and year-ended December 31, 2007.
Fourth quarter revenue increased by 26.5% to $591.1 million in 2007, compared to $467.4 million in the corresponding quarter of 2006.
During the fourth quarter of 2007, the Company had a $10 million financial expense related to the write-off of investments Auction Rate Securities, which were rated AAA or AA when acquired, and which have experienced multiple failed auctions due to a lack of liquidity in the market for these securities.
Elbit's orders backlog as of December 31, 2007 reached $4.62 billion, an increase of 22%, as compared to $3.79 billion at the end of 2006. 70% of the backlog relates to orders outside of Israel. Approximately 70% of the firm's backlog as of December 31, 2007 is scheduled to be performed during 2008 and 2009.
Gross profit for the fourth quarter of 2007 was $156.2 million, as compared to gross profit of $100.2 million in the fourth quarter of 2006, and the gross profit margin in the fourth quarter of 2007 was 26.4%, as compared to 21.4% in the fourth quarter of 2006.
Net profit for the fourth quarter of 2007 increased by 33.2% to $31.9 million, compared to $24 million for the same period of 2006. Diluted earnings per share for the fourth quarter of 2007 was $0.75, as compared to $0.57 for the fourth quarter of 2006.
Consolidated revenue for the full year of 2007 increased by 30% to $1.98 billion, as compared to $1.52 billion in 2006.
Gross profit for the year ended December 31, 2007 was $516.4 million, as compared to gross profit of $373.5 million in 2006, and the gross profit margin in 2007 was 26.1%, as compared to 24.5% in 2006.
One-time charges related to the completion of the acquisition of Tadiran Communications on April 26, 2007, which were charged in the second quarter, impacted full year results. Elbit Systems recorded $27.1 million in expenses in relation to the acquisition, with an in-process research & development (“IPR&D”) write-off of $16.6 million recorded under operating expenses, and restructuring expenses of $10.5 million recorded under cost of goods sold, which negatively affected the gross profit rate by 0.5%.
Net profit for the year ended December 31, 2007 increased by 6.2% to $76.7 million, as compared to $72.2 million in 2006. Diluted earnings per share in 2007 were $1.81, as compared to $1.72 in 2006.
Excluding the above one-time, net charges related to the acquisition of Tadiran Communications, net earnings for the year ended December 31, 2007 were $101 million, and earnings per shares reached $2.39.
Elbit Systems president and CEO Joseph Ackerman commented that "2007 was a banner year in which we continued our top line growth while producing record net profit, EPS, backlog and operating cash flow. We have been very successful in further globalizing our business, with strong growth in Europe, and we now have presence in important and diversified geographic regions, with a cutting edge comprehensive product portfolio for the evolving needs of the markets in which we are active."
Elbit Systems, with its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2008