Ben-Gurion International Airport, Israel - Israel Aircraft Industries' (IAI) has reported a $92.2 million net profit for the first 9 months of 2001, an increase of 52 percent over the $60.9 million net profit gained during the same period last year. This figure includes a capital gain of $34.2 million from the sale of Galaxy Aerospace, IAI's business jet subsidiary, to Gulfstream Aerospace. Mr. Moshe Keret, President & CEO reported the results to the Board of Directors chaired by Gen. (res.) Ori Orr. The Board approved the company's results ending September 30, 2001.
The net profit without the capital gain is $58 million, a decrease of 5 percent as compared to the same period in 2000.
Company sales in the first 9 months of 2001 totaled $1.502 billion, compared to $1.563 billion in the same period last year, a decrease of approximately 4 percent in sales volume. The sales level reflects the global slowdown in some of the company's principal markets.
IAI's subsidiary ELTA Electronics completed the first 9 months of 2001 with a net profit before tax of $10.4 million compared to $20 million for the same period last year, a decrease of 48 percent.
ELTA reported total sales during the first 9 months of 2001 reaching $286.5 million, compared to $357.6 million during the same period in 2000, a decrease of 20 percent. The reported decrease in sales was due mainly to the introduction of a new accounting standard and the delay in several material new orders.
During his presentation to the Board of Directors, Mr. Keret, said: "The global slowdown in civil aviation has had a significant negative effect on some of the company's areas of activity. The company has been able to rely on its backlog, and the balance between civil and military markets over a wide spectrum of products and services. Various measures taken by Corporate Management to cut expenditures and improve the level of competitiveness contributed to the company's profitability, despite the slowdown in activity".
Mr. Ori Orr, Chairman of the Board, added: "IAI's business strategy is proving itself in these uncertain times. Both the company's Board of Directors and Management closely follow developments in the market and adjust the company's business accordingly".
Dr. Abraham Knobel, Vice President of Finance said: "IAI is one of the first among the large Israeli companies to report its financial statements for the first nine months of 2001. The up to date financial reports allows us to make major business decisions in real-time, especially in light of the current market situation".