Israel Aerospace Industries (IAI) has reported its financial results for the first quarter of 2020.
- Sales volumes grew to about US$1.018m compared to around US$1.001m in Q1 2019, a record first quarter for sales volumes in IAI’s history.
- EBITDA increased 48% to approximately US$102m compared to US$69m in Q1 2019.
- 39% growth in gross profit in the current quarter to about US$170m (about 16.7% of sales) compared with around US$122m in the corresponding quarter of 2019 (about 12.2% of sales).
- 205% increase in operating income to about US$61m (approximately 6% of sales) compared with operating income of around US$20m (about 2% of sales) in Q1 2019.
- 15% increase in R&D expenses in Q1 2020 to about US$39m compared to about US$34m in Q1 2019.
- 143% growth in net income in the current quarter to about US$34m compared with net income of about US$14m in the corresponding quarter of last year.
- The Company’s order backlog approximates to US$13.2bn, representing approximately three years worth of operations.
- The Company has free cash flows totalling around US$1.2bn and equity amounts to around US$955m.
Nimrod Sheffer, President and CEO of IAI: “The results of the first quarter of 2020 are the continuation of the business transformation and the implementation of the company’s new strategy which have already been reflected in the record-breaking results for 2019. In the first quarter of 2020 we surpassed the corresponding quarter of 2019 in most business parameters. To date, the Company is not aware of any cancelations of contracts or any major delays resulting from the Covid-19 pandemic and the Company continues to collaborate with its customers to find solutions for any disruptions (such as in the supply chain) caused by the outbreak. The Company is also analyzing its own forecasts regarding future commitments, mainly in the commercial aviation segment, in view of the impact on global activity in this segment. As a business-oriented company, IAI is constantly monitoring the developments in its business climate and is benefitting from its strong vantage point that allows it to better meet the challenges of the pandemic, all owing to the corporate efficiency measures adopted, the strict and careful adherence to the new business strategy, the Company’s solid financial position, its technological and business diversity and its commitment to the best human capital both in Israel and worldwide. Our business success is also reflected in the ability to recruit new quality personnel as evidenced by the fact that IAI has been ranked second in the list of Israel’s 100 employers of choice.”