Israel Aerospace Industries (IAI) reported on 18 March that its sales for 2020 had reached a record high of USD4.184 billion: an increase of 1.85% on 2019.
Net income for the company also grew from USD90 million in 2019 to USD133 million last year, while other financial indicators also pointed towards significant success during the Covid-19 pandemic. These included a 15% increase in gross profit, from USD577 million in 2019 to USD665 million in 2020, and operating income increasing by 61% to USD195 million.
In a statement on the results, the company attributed the increase in sales to successes by its sensor subsidiary ELTA Systems, as well as the Systems Missiles and Space Group. The company’s Military Group increased its sales from USD3.08 billion in 2019 to USD3.51 billion in 2020. This helped to reinforce the decline in the company’s Aviation Group business, which dropped from USD1.4 billion in 2019 to USD1.2 billion in 2020. IAI attributed USD25 million of this decline to the impact of Covid-19 on the aviation sector.
IAI’s sales have increased significantly in recent years, with net income also surging. (IAI/Janes)
Overall, the company’s Military Group increased its gross profits by USD78 million in 2020 to USD598 million, while operating profit also grew from USD241 million to USD285 million. The Aviation Group recorded an operating loss of USD10 million for 2020: down from a USD1 million profit the year before. However, gross profit for the division increased to USD78 million from USD74 million in 2019.
Despite the increase in sales, the orderbook backlog for the company declined from USD13.5 billion in 2019 to USD12.6 billion, of which 79% is for export.
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