Elbit Systems Ltd (NASDAQ: ESLT) has recently been awarded a $65 million contract by an Asian-Pacific country to provide a comprehensive Search and Rescue (SAR) solution. The project is to be executed over a three-year period. As per the contract and as part of ESLT’ comprehensive airborne radio communication solutions portfolio, the Israeli company will install Airborne Locator Systems (ALS) and Emergency Locator Transmitters (ELTs) onboard various mission aircraft and rotorcraft platforms in use by the customer’s Air Force, Army and Navy, and will also supply thousands of Personal Survival Radio (PSR) systems.
Moreover, the company has planned to acquire Israel Military Industries Ltd. (IMI), which the Ministry of Finance approved last week. The company is continuing its talks with the Israeli government about the terms for completing the transaction.
Meanwhile, ESLT in the fourth quarter of FY 17 has reported 6% growth in revenue to $1 billion, and its operating profit grew 18.3% to $103 million, compared with the corresponding quarter in 2016. Elbit Systems’ fourth-quarter net profit grew 3.4% to $69 million. The company had surpassed one billion dollars of revenue in a quarter for the first time in the company’s history.
Furthermore, the company’s orders backlog stood at $7.6 billion at the end of 2017, compared with $6.9 billion at the end of 2016. 73% of ESLT’ orders backlog consisted of orders from foreign customers, and 65% of it consisted of orders for delivery in 2019. ESLT has declared the distribution of a dividend of $0.44 per share. The share price of the company, which has seen its orders from customers for security equipment increase in both Israel and overseas in recent years, has posted a 250% rise in orders over the past five years.
Additionally, for 2017, ESLT has posted 3.6% rise in revenue to $3.4 billion. The company’s sales of land-based systems improved driven by increased sales in Europe of electronic warfare systems and tanks systems. ESLT also benefited from a rise in sales of electro-optical systems, featuring sales growth in air intelligence systems, night vision systems in the Asian Pacific region, and airplane defense systems in other regions. On the other hand, sales of computer systems (communications and computers) fell due to the lower sales of command and control systems and unmanned aerial systems (UAS) in Latin America.
In addition, the company’s operating margin improved in 2017 due to the increase in the gross profit as compared to 2016 and the decrease in 2017 in general and administrative expenses is due to the revaluation of liabilities related to assets and activities acquired in prior years.