Results of first half of 2011:
Company sales for the first half of 2011 grew by 11% and reached $ 1.8 billion, compared to $ 1.6 billion in sales for the same period in 2010. Export sales reached $ 1.4 billion, a growth of 12% compared to first half of 2010.
Sales to the military market in the first half of 2011 totaled approximately $ 1.3 billion, an increase of 6% compared to the equivalent period in 2010. Sales to the civilian market totaled $ 492 million, an increase of 29% compared to the equivalent period in 2010.
Gross profit for the first half of 2011 totaled $ 234 million, compared to $ 229 million in the equivalent period in 2010, an increase of 2%.
Income from ordinary activities before costs relating to retirement of employees for the first half of 2011 totaled $87 million, compared to $ 68 million for the equivalent period in 2010, an increase of 28%.
Marketing, administrative and general expenses for the first half of 2011 totaled $ 105 million (6% of sales), compared to $ 98 million for the equivalent period in 2010 (6% of sales).
Other net income for the first half of 2011 totaled $ 25 million, compared to $ 1 million for the equivalent period of 2010. Income includes a gain from the sale of holdings in Elisra Systems in the first quarter of 2011.
Financing income, net for the first half of 2011 totaled $ 12 million, compared to $ 19 million in the equivalent period of 2010. Financing income net includes income from a one-time sale of IAI's remaining shares in Spacecom, and from hedge transactions performed to reduce the adverse effect on profitability due to the appreciation in value of the New Israeli Shekel against the US Dollar.
Net profit for the first half of 2011 totaled $ 79 million (4% of sales), compared to $55 million in the first half of 2010 (3% of sales), an increase of 44%.
Orders Backlog for a wide array of products and systems across a broad geographical area, stands at $ 8.9 billion, representing over two and a half years of forward work activity.
Cash flow from operations was negative, totaling $ 127 million. The decrease in cash flow arose from an increase in debt of the Ministry of Defense and foreign customers.
Results of the 2nd Quarter of 2011:
Sales for the 2nd quarter of 2011 grew by 12% and totaled $ 938 million, compared to $ 839 million for the equivalent period last year. Export sales totaled $ 767 million, a growth of 16% compared to the 2nd quarter of 2010. Sales to the military market for the 2nd quarter of 2011 totaled approximately $ 673 million. Sales to the civilian market totaled approximately $ 265 million, an increase of 36% compared to the equivalent period in 2010.
Profit from ordinary activities before costs associated with retirement of employees for 2nd quarter 2011 totaled $ 35 million, compared to $ 32 million in the equivalent period in 2010, an increase of 8%.
Research and development costs for 2nd quarter totaled $ 34 million (4% of sales), compared to an investment of $ 32 million (4% of sales) in the equivalent period in 2010.
Marketing, administrative and general expenses for 2nd quarter 2011 totaled $ 54 million (6% of sales), compared to $49 million for the equivalent period in 2010 (6% of sales).
Financing income, net for 2nd quarter 2011 totaled $ 10 million, compared to financing income of $ 29 million in the equivalent period in 2010. This includes the return from selling the Spacecom shares.
Net profit for 2nd quarter 2011 totaled $ 33 million (4% of sales), compared to $ 38 (5% of sales) million for the equivalent period in 2010.
Summary Balance Sheet:
|
|
As at June 30, 2011 |
As at December 31, 2010 |
|
|
USD millions |
% of the Balance |
USD millions |
% of the Balance |
|
Total balance sheet |
4,588 |
100 |
4,465 |
100 |
|
Current assets |
3,645 |
79 |
3,488 |
78 |
|
Of which: Cash and cash equivalents and short term investments |
1,563 |
34 |
1,635 |
37 |
|
Current liabilities |
3,292 |
72 |
3,114 |
70 |
|
Shareholders' equity |
832 |
18 |
773 |
17 |
Summary of business results:
|
|
Six month period ended
June 30 |
Three month period ended June 30 |
|
|
2011 |
2010 |
2011 |
2010 |
|
|
USD millions |
% |
USD millions |
% |
USD millions |
% |
USD millions |
% |
|
Sales |
1,793 |
100 |
1,609 |
100 |
938 |
100 |
839 |
100 |
|
R&D expenses |
67 |
4 |
64 |
4 |
34 |
4 |
32 |
4 |
|
Retirement costs |
31 |
2 |
17 |
1 |
10 |
1 |
11 |
1 |
|
Profit from operations |
56 |
3 |
51 |
3 |
24 |
3 |
21 |
2 |
|
Net profit |
79 |
4 |
55 |
3 |
33 |
4 |
38 |
5 |