Israel Aerospace Industries reports Q2 2012 net loss of $22m

Israel Aerospace Industries announced the publication of its consolidated financial statements for Q2, ending June 30, 2012. Company’s sales for Q2 2012 reached $808m, compared to $938m in Q2 2011. Export sales represent 80% of total sales and reached $645m. Military market sales represent 75% of total sales and reached $603m. The decrease in sales is attributed to a reduction in the scope of activity, mainly in the civil market in the area of engine maintenance and aircraft conversions, as well as to delays in development projects which resulted in deferred recognition of income. Gross profit for Q2 2012 reached $130m (16.1% of sales), compared to $121m (12.9% of sales) for Q2 2011, an increase of 8%. The improvement in gross profit is mainly attributed to the significant effect of the devaluation of the Shekel on profitability. Profit from activities for Q2 2012 reached $28m (3.4% of sales), compared to $ 24m (2.5% of sales) for Q2 2011. Net loss for Q2 2012 reached $22m, compared to a net profit of $33m for Q2 2011. Backlog of $9.2bn ensures over two and a half years of activity. 86% of the backlog is earmarked for sales to overseas customers. The backlog consists of a wide variety of products across a broad geographical spread. Cash flow from current activities reached $58m, compared to a negative cash flow from current activities of $201m for Q2 2011.