Israel Aerospace Industry net profit rose by 49% and totaled approximately 318 million dollars

The Aerospace Industry has published its reports for 2023, from which it appears that this is the most successful year since the establishment of the company. The global demand for military equipment that has soared since the war in Ukraine and the war in Israel in the last quarter of the year has arranged for the aerospace industry to accumulate orders totaling 18 billion dollars in 2023, compared to 15.6 billion dollars the previous year.
The volume of sales increased by 7% to about 5.3 billion dollars - the highest in the company's history. There was also a 49% increase in net profit to a total of approximately 318 million dollars - also the highest ever. The share of sales of the military divisions in 2023 increased by about 9.4% to about 4.4 billion dollars and the sales of the missile and space division recorded the largest increase among the divisions of the aerospace industry. A considerable increase was also recorded in the sales of the subsidiary company Alta - a manufacturer of radars for the Iron Dome, the David Arrow and Slingshot.
The share of sales for export in 2023 amounted to about 3.8 billion dollars (about 71%) and to the local market about 1.5 billion dollars (about 29%), this compared to about 3,607 million dollars (about 73%) and about 1,366 million dollars ( about 27%) in 2022, respectively.
Meanwhile, the fourth quarter of this year, which was characterized by the outbreak of war in Israel, as mentioned, broke records in itself: the company's net profit amounted to 79 million dollars compared to 11 million dollars in the corresponding quarter last year. Total sales in the quarter amounted to 1.454 billion dollars compared to 1.372 billion dollars - an increase of 6%. The company stated that in terms of sales, this is the best quarter in the company's history.
The company's chairman, Amir Peretz: "I am prouder than ever to head the largest Israeli government security company, which in 2023 faced unexpected challenges. The international changes that affected the ability to conduct routine business in areas where stability was undermined and in addition to the war in Israel, forced us to prioritize the needs of the IDF and the defense establishment. The company worked around the clock to meet the operational requirements of the IDF, to supply all the required armaments. New systems that were in the final stage of development, entered into operational activity. Despite the complexity, we maintained the upward trend of the business results, and the year 2023 ends as the best year since the establishment of the aerospace industry in all indicators."
According to him: "This year we made a decision to increase investment in the periphery, and therefore we are promoting innovation center projects in Dimona and Eilat, and are looking at another center in the north. In order to contribute to the strengthening of the Negev and the surrounding settlements, we decided to increase the investment in the dry plant in Be'er Sheva as well as to establish a plant in Ofakim, as part of strengthening sources of livelihood and creating Jobs that will encourage the residents of the periphery, including in Otef, to return to their place of residence."
CEO of IAI, Boaz Levy: "IAI's financial report for 2023 reflects well a year of significant and wide-ranging activity in a year in which the entire last quarter was at war. The mobilization of our employees for strenuous and wide-ranging activities for the Israeli security system, and not least, Activities on behalf of our clients abroad led to breakthrough results in this challenging year."
Chairman Peretz's annual salary was $338,000, and CEO Levy's annual salary was $473,000 (including bonus).