Elbit to record results, with an increase in sales - increase of 8.4% compared to last year

Posted on Mar 26, 2024 by Ifi Reporter

The combination between the war of iron swords and the war in Ukraine brought Elbit to record results, with an increase in sales to the Ministry of Defense and European countries. The company is on the verge of reaching the $6 billion mark in annual sales, an increase of 8.4% compared to last year, and its order backlog has reached a record of $17.8 billion, a jump of 17.8%. However, the net profit was 215 million dollars, a sharp decrease of 22%, which is attributed to the closure of the activities of a subsidiary owned in the USA and the write-off of a bad debt on a project that was managed there and terminated.
The company's weapon systems and armaments starred in the war in Gaza and the northern border, starting with the tank shells and cannons, the attacking Zik and Khokav UAVs, the laser-guided mortar gas UAVs and more. At the same time, at the height of the war, 2,000 Elbit employees were drafted into the reserves, and five of them were killed in battle: Liav Atiya, Ohad Asur, Nitai Meisels, Omri Ruth and Avihai Amsalem.
The company had to evacuate two of its production lines, in Kiryat Shmona, which produces radios, and in Sderot, which produces electro-optical systems, which has since returned to work. Elbit helped hundreds of its employees to rent apartments in other cities, and the activity of the northern factory moved to other of its facilities, until it is possible to restart it.
The increase in sales to the IDF can be seen in the last quarter's data: while the company's general sales increased by 8%, sales in Israel jumped by 61.5% to $437 million, while Elbit accelerates the production of shells and other products for the IDF so as not to reach to a situation of lack of stock. Orders from the Ministry of Defense will also have an impact on the 2024 first quarter report that will be published in the coming weeks.
"If in recent years we have sold to the defense system for 1.1 billion dollars a year and in 2023 we have grown to 1.7 billion dollars, I estimate that in the coming years this increase will be maintained," Elbit CEO Bezalel (Butsi) Machlis told Walla.
"The Ministry of Defense also paid Elbit most of its debts in the last quarter, and we estimate that this will be the case in the next quarter as well. We received new orders for existing systems, as well as for new systems. Many of the company's systems are participating in combat, with the Digital Land Army (DDF) system being the first to order the activity the complexity of Gaza, on land, from the air and from the sea and allowed for very close attacks on our forces. The war in Gaza is the first digital war in the world, and it is based on a system we have been developing for 20 years."
Elbit also increased its sales in Europe, which continues to prepare for war with Russia, but records a decrease in sales to the USA and Canada. At the same time, Machlis admits, after a number of statements by foreign countries and primarily Canada about an arms embargo on Israel or revenues in preparation for it, that the company is sometimes beginning to encounter supply difficulties From countries that limit the supply of security components to Israel following the continuation of the war in Gaza.
Machlis: "There are places where it is difficult for us to purchase components today, but we have no strategic dependence on anyone and we know how to cope, even if it is not a walk in the park. We have no strategic dependence. It is on the fringes, but you can't say it doesn't exist. Even if someone doesn't want to sell to us, we will know how to find an Israeli component or from another country as a replacement."


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