Israel Aerospace Industries earnings increased in the 3rd Q quarter to $ 32 million

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by Ifi Reporter Category:Government Nov 28, 2019

Israel Aerospace Industries earnings increased in the third quarter of the year, to $ 32 million, compared to a net loss of $ 21 million in the corresponding quarter last year, according to the company's financial statements for the third quarter of the year.

The reports show that the IAA's operating profit increased by $ 42 million in the last quarter, compared with an operating loss of $ 19 million in the corresponding period last year. In the last quarter, IAI sales totaled more than $ 1 billion, an increase of almost 17 % Compared to the corresponding quarter in 2018.
The IAI says that sales growth is evident across all divisions of the company, noting that its backlog is $ 13.3 billion and has a cash balance of $ 1 billion.
In the meantime, the company's reports indicate a $ 245 million negative cash flow that was explained by a central customer payment delay. The company notes that this delay does not put it at risk of meeting its future obligations. The TAA does not specify who it is, but according to security market sources, it is the defense system - due to the political situation that makes it difficult to form a government and lack of budget. In recent months, this has led to the defense system's debt towards other security companies, including Elbit Systems.
CEO Nimrod Shaffer said: "The quarterly results continue the trend of improving company performance and I see this as the result of implementing its new strategy, which focuses on entering new markets, improving the operating model and targeting the growth engines."
Shaffer added that "IAI will continue its increased marketing and sales efforts alongside operational efficiency, while continuing to invest in R&D that will drive the development of innovative technologies by its excellent human capital."
At the beginning of the year, IAI consolidated all of its civilian activities, which until then were characterized by incremental losses of hundreds of millions of dollars over the last decade into one division - called the Aviation Division.
The aerospace industry has been issuing a 25% share of the company's shares for several months. However, due to the political situation, delays are expected in the IPO process, with deep disagreements in the background with the company's employee committee, which opposes the current format of the IPO. Due to the same controversy, the committee halted the negotiations between it and management also for the drafting of a new labor agreement in TAA - which will replace the labor agreement that has been in place since the 1970s: "Most TAA employees understand that they want to be rewarded Achievements and bonuses on successes since these are employees of the 2000s, and we can no longer lean on a work agreement from the 1970s, "a senior TAA official said about trying to formulate a new employment agreement with the company. According to estimates, this agreement will mature next year.
The IAA Board of Directors yesterday approved the appointment of Shlomi Sodri to the director of its space plant.

 

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