IAI Backlog as of June 30th, 2010, sustained a net growth since the beginning of 2010 of $1.3 billion, and reached a total of $9.1 billion. Exports comprise 83% of the backlog orders.
Company sales increased in the second quarter of 2010 by 26%, reaching $840 million, compared to $667 million in sales in the same quarter of 2009. Export sales reached $664 million, a 28% growth compared to the second quarter of 2009. Sales to the military market reached approximately $645 million in the second quarter of 2010, an increase of 17% compared to the same quarter of last year. Sales to the commercial market reached $195 million, a growth of 71% compared to the same quarter in 2009.
Company sales in the first six months of 2010 reached $1.6 billion, compared to $1.4 billion in the same period of 2009, an increase of 12%.
Gross profit for the second quarter reached $117 million, compared to $98 million in the same quarter of 2009, an increase of 19%. The increase in the gross profit, despite the 7% revaluation of the New Israeli Shekel compared to the same period in 2009, stems from the company management's efforts to increase efficiency and curb expenses. The gross profit for the first half of 2010 reached $229 million.
Research and development expenses in the second quarter of 2010 reached $32 million, compared with $28 million in the second quarter of 2009, an increase of 15%. The investment in the first half of the year reached $64 million (4% of sales), compared to $56 million in the first half of 2009, an increase of 14%. IAI management considers research investments to be crucial to securing the company's future.
Marketing, management, and general expenses in the second quarter of 2010 reached $48 million, compared to $46 million in the second quarter of 2009. The increase in expenses is a result of the revaluation of the shekel at 7%.
Net financial income in the second quarter reached $29 million, compared to the $12 million net financial income for the same quarter in 2009. Net financial income for the first half of 2010 reached $19 million.
Net profit for the quarter reached $38 million, compared to $22 million in the second quarter of 2009, an increase of 72%.Total profit for the reporting period reached $55 million, an increase of 49% from the same period last year.
Positive cash flow from current activities reached $378 million, compared to $209 million on December 31st, 2009. The improved cash flow reflects the company's financial stability.
In response to the approval and publication of IAI's financial statements for the period ending June 30th 2010, IAI's Chairman of the Board of Directors, Mr. Yair Shamir, said: "Company sales during the first half of 2010 grew by 12% compared to the first half of 2009. This increase comes from both the military market, in which IAI continues to play an important role; and from the civilian market, which is beginning to recover from the global crisis. The company's net profit for the first half of 2010 is $55 million, which is 49% greater than the net profit of the same period in 2009, and reflects company management's ongoing efforts to increase efficiency and decrease expenses, along with marketing efforts to increase sales and backlog."
Mr. Shamir praised the successful manufacture and launch of the "Ofeq 9" satellite, emphasizing the technological and operational achievement of the satellite, and its important contribution to the security of the State of Israel.
The President and CEO of IAI, Mr. Itzhak Nissan, said: "Company backlog has increased since the beginning of the year by $1.3 billion, reaching over $9.1 billion, or the equivalent of approximately 3 years of sales. The backlog can last for a number of years, ensuring the company's security and growth in the short and the long term. 83% of the backlog is made up of exports to a variety of customers worldwide. Export sales, worth $1.3 billion, increased 14% compared to export sales in the same period in 2009. The company invested $64 million in research and development of new, unique technologies and advanced products using equity capital. In the last quarter the company had to make additional essential investments in the development of the unmanned aerial system Heron TP and in the new G250 business jet, which is currently undergoing a series of flight tests in order to become certified on schedule. The company continues to think ahead by allocating resources for employees' early retirement. Leveraging these efforts, the company is breaking into new markets, strengthening its joint projects in developing countries, and continuing its march to increased efficiency and decreased expenses."
Chief Financial Officer and Corporate VP of IAI, Mr. Menashe Sagiv, emphasized that the company's cash balance now stands at approximately $1.6 billion. The cash flow from joint activities, which reached $378 million, reflects the company's financial strength. The company's current ratio is 1.1, pointing to IAI's stability.
Sagiv added that "during the reporting period, the company profited from the sale of its shares in Spacecom, and recorded a loss from the closing of a subsidiary in the US, which was affected by the worldwide crisis in the civilian aerospace market.
Standard & Poor (S&P) ranked IAI's bonds for this quarter at AA/Stable."
Balance sheet data:
|
|
As of 30.6.2010
|
As of 30.6.2009
|
|
|
In USD millions
|
%
of the balance
|
In USD millions
|
%
of the balance
|
|
Total balance
|
4,289
|
100
|
3,843
|
100
|
|
Current Assets
|
3,307
|
77
|
2,897
|
75
|
|
Of which: Cash and cash equivalents and short-term investments
|
1,562
|
36
|
1,248
|
32
|
|
Current Liabilities
|
3,007
|
70
|
2,605
|
68
|
|
Long-Term Liabilities
|
548
|
13
|
562
|
14
|
|
Of which: Bonds
|
239
|
6
|
247
|
6
|
|
Equity Capital
|
734
|
17
|
676
|
18
|
A summary of the business results (in millions of USD):
|
|
For the six month period ending on June 30
|
For the three month period ending on June 30
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
$
|
%
|
$
|
%
|
$
|
%
|
$
|
%
|
|
Sales
|
1,609
|
100
|
1,442
|
100
|
840
|
100
|
667
|
100
|
|
Gross profit
|
229
|
14
|
227
|
16
|
117
|
14
|
98
|
15
|
|
R&D expenses
|
64
|
4
|
56
|
4
|
32
|
4
|
28
|
4
|
|
Administrative, marketing and general expenses
|
98
|
6
|
93
|
6
|
48
|
6
|
46
|
7
|
|
Income from ordinary activities
|
51
|
3
|
50
|
3
|
21
|
2
|
12
|
2
|
|
Financial income / (expenses), net
|
19
|
1
|
2
|
0
|
29
|
3
|
12
|
2
|
|
Profit before taxes on income
|
71
|
4
|
51
|
4
|
50
|
6
|
23
|
3
|
|
Taxes on income
|
(16)
|
|
(14)
|
|
(12)
|
|
(1)
|
|
|
Net profit
|
55
|
3
|
37
|
3
|
38
|
5
|
22
|
3
|
In the pictures:
IAI's Chairman of the Board of Directors, Mr. Yair Shamir
IAI's President and CEO, Mr. Itzhak Nissan
IAI's Chief Financial Officer and Corporate VP, Mr. Menashe Sagiv
For more information, please contact:
Doron Suslik
Deputy Vice President of Communications
Tel: 972-(0)-3-935-8509
Fax: 972-(0)-3-935-8512
Email: hpaz@iai.co.il