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growth is partially attributed to the completion of acquisition
of Tadiran Communications, for which the company used $27.1
million in cash, totally eroding a potential net profit of $23.7
million, into a loss of $0.7 million. The bottom line In the
first half of 2007 the company generated $130 in cash. Relying
on a backlog of orders set at a record $4.2 billion, Elbit Systems
is set to continue to prosper from a growing demand for aerospace
and defense electronics.
July 26, 2007:
Elbit Systems Ltd. completed the acquisition of UK based Ferranti
Technologies (Group) Limited ("FTL"). Elbit acquired
FTL's entire share capital for £15 million (approximately
US$31 Million). FTL is the second acquisition Elbit made in
the UK. Together with U-TacS, a UAV Systems company established
with Thales UK and UEL, the UAV engines' company, the acquisition
will strengthen the Group's presence in the European and UK
important market. FTL designs and manufactures electronic, power
and control solutions for aerospace and defense systems
March 2007:
Elbit Systems is reporting today its 2006 results, reporting
42% increase in revenue to $1.52 billion, doubling the profit
to $72.2 million (EPS: $1.72). The By December 31, 2006 its
backlog soared to $3.79 billion, a slight increase from $3.35
billion reported in 2005.
Elisra's Diffuses the Magic Touch
While Elbit's gross profit for the fourth quarter
of 2006 was higher than the fourth quarter of 2005, ($100.2
million, as compared to $78.4 million in Q4/2005). The Q4/06
gross profit margin in reduced to 21.4%, from 24.4% in the fourth
quarter of 2005. In 2006 Elbit Systems included the results
of the Elisra Group it acquired in 2006, an addition which increased
revenues but eroded profits, hence reducing the gross profit
margin by 3.8 percentage points. This effect was diffused in
the annual report, with 2006 full year gross profit margin reported
at 24.5%, down from 26.1% in 2005. Again, this decline is attributed
to Elisra's performance. Gross profit for the year ended December
31, 2006 was $373.5 million, as compared to gross profit of
$279.8 million in 2005.
It should be noted that 2005 was not just another
year in the history of Elbit Systems. It was a stormy year,
where the company 'digested' three acquisitions, of Elisra,
Tadiran Communications Ltd
and Sandel Avionics in the USA. When tracing the company's performance
before the merger, the numbers tell a positive story of consistent
growth and stabilization, after a stormy year reflected by write
offs charged on three acquisitions - Israeli Tadiran Communications
and Elisra and Sandel in the USA. With these events behind it,
Elbit is positioned to sustain its growth at an even higher
pace, provided that its forthcoming consolidation with Tadiran
Communications will also prove positive.
President and CEO of Elbit Systems, Joseph Ackerman is not illusive
about these facts and is determined to turn Elisra and Tadiran
which is yet to be included in 2007 reports into contributors,
rather than liabilities to the group. "Our results were
achieved despite the negative impact from Elisra's financial
performance, and we intend to continue the Elisra turn-around
in 2007, making it a contributor to our financial results, while
maintaining our growth and profitability patterns“. Despite
its difficulties, Elisra turned a record backlog in 2006 and
merged its three subsidiaries into a single operating unit,
and, as it continues to improve this year, it will be positioned
to further improve its performance in 2007.
“We see the results of our continued investments
in R&D and in developing leading edge technologies."
said Akerman, "These technologies and our proven track
record enabled us to win prestigious and important contracts
and to further enhance our network of customers and business
partners. I believe that the results of all these efforts will
be reflected in our performance in 2007 and beyond as we continue
the execution of our growth strategy both organically and through
selective acquisitions”.
While Elbit Systems began its operations in Israel
(32% of its sales are generated in its domestic market), it
has become a "multi-domestic" entity, investing in
growing local entities in several markets considered strategic
to its growth. These include North America, where lbit generated
over sales of US$600 million in the past year, in Latin America
(Brazil), Eastern Europe (Romania) and Asia.
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