The crisis in the economy signaled a 74% drop in Elbit's earnings - the profit amounted to $ 17 million

The crisis in the economy signaled a 74% drop in the company's earnings based on US GAAP in the past quarter, compared to the same quarter in 2019 - to $ 17 million, which is 38 cents a share.
The sharp drop in profit of 25% is due to a provision of $ 60 million for a decrease in the value of Elbit's investment in the subsidiary Universal Avionics, which is active in the field of civil aviation, due to the decrease in demand for its products - flight management systems and flight warning systems. .
The company's profit on a non-GAAP basis - that is, after deducting the one-time provision for impairment and write-offs of Universal and other subsidiaries, such as Cyclone, which manufactures parts for passenger aircraft from composite materials, and after deducting intangible assets - was $ 73 million last quarter. Per share, an increase of 24% compared to the corresponding quarter in 2019.
Elbit Systems 'revenue grew 3% in the third quarter of 2020, compared to the same quarter in 2019, and totaled $ 1.1 billion, according to analysts' average forecasts. The increase is due to the consolidation of sales of the night vision activity, which was acquired from Harris in mid-September 2019. According to Yossi Gasper, Elbit's CFO, after deducting the contribution of this activity, there was a marginal decrease in the company's revenues, probably on the order of 1% .
In terms of the distribution of Elbit's revenues according to its product lines, it appears that revenues of the airline systems decreased in the past quarter compared to the same period in 2019 by 1%, and amounted to $ 393 million - partly due to the decrease in Universal's revenues in the field of civil aviation; The company's revenues in the field of command, control, communications and computing decreased by 6% to $ 280 million, mainly due to the decrease in sales of communications systems to Latin America; Revenue from the terrestrial systems increased by 10% to $ 324 million, thanks to growth in IMI's revenues; revenues in the electro-optical field increased by 38% to $ 108 million, mainly due to the consolidation of revenues from night vision activities, which were acquired as stated From Harris, whose annual turnover before its acquisition was $ 160 million.
Elbit's gross profit fell 17% in the third quarter of 2020, compared to the same quarter in 2019, and amounted to $ 237 million. The sharp decline is due to the provision for the decrease in the value of the investment and the write-off of inventories in Universal and other subsidiaries.
Gross profit in Non GAAP terms increased 4.2% in the third quarter of 2020 compared to the same quarter in 2019, and amounted to $ 302 million, which is 26.7% of turnover - compared to 26.3% of turnover in the corresponding quarter in 2019. Machlis and Gaspar explain the improvement in gross profitability in ongoing streamlining processes, such as the concentration of purchasing in the group; Connecting activities and eliminating duplicates; Implementing an ERP system in growing parts of the group, as well as in a better product mix.
Non-GAAP operating income grew by 15% in the third quarter of 2020 compared to the same quarter in 2019, and amounted to $ 93 million, which is 8.2% of turnover - compared to 7.3% of turnover in the corresponding quarter.