Israeli defence electronics company Elbit Systems has reported strong results for the first quarter, including a rise in revenue and profits alongside a record orders backlog. Elbit has previously reported that it does not expect coronavirus to have any effect until the second quarter. According to the company, some of its businesses have begun to experience some disruption due to government directed safety measures, travel restrictions and supply chain delays.
According to the report, revenue in the first quarter of 2020 was US$1.0712bn, up from US$1.0217bn in the corresponding quarter of 2019. Non-GAAP net profit in the first quarter of 2020 was US$72m ($1.63 per share) up from US$65.8m ($1.54 per share) in the first quarter of 2019 while GAAP net profit over the same period was US$63.6m ($1.44 per share) compared to US$50.5m ($1.18 per share).
Elbit’s backlog of orders as of 31st March 2020 was US$10.790bn, up from US$9.658bn compared to 31st March 2019 with 63% of the backlog for orders from outside Israel and 59% to be delivered during 2020 and 2021.
Elbit Systems CEO and president Bezhalel Machlis said that in the first quarter, the company witnessed positive momentum across our markets, receiving more than US$1.8 bn in orders from customers around the world. “These orders contributed to a record backlog of US$10.8bn, growing by 8% over the last quarter of 2019, and providing Elbit Systems with good revenue visibility.”
Last year, Elbit last year acquired Israeli Military Industries (IMI) and currently is adding some new production lines based on this company’s heritage as Israel’s main manufacturer of certain types of ammunitions and accurate rockets.