IAI publishes financial statement for Q1 2014

Israel Aerospace Industries, Israel’s leading aerospace and defense company, issued its consolidated interim financial statements for the three months ended March 31, 2014. The Company showed record sales and an increase in gross profit against the slowdown in the activities of the Bedek Aviation division and conversion of passenger aircraft to cargo configurations. The Company’s sales in Q1 2014 amounted to US$979m compared to US849m in Q1 2013, a 15% increase. The increase in sales in Q1 2014 mainly arises from the growth in the Company’s military divisions – Systems Missiles and Space division, the Military Aircraft division and Elta. Operating income in Q1 2014 amounted to US$15m (1.5% of sales) compared with US$20m (2.4% of sales) in Q1 2013, a decrease of US$5m reflecting a decrease of 25%, arising from the weakening of the U.S. dollar exchange rate in relation to the NIS, the increase in in-house R&D expenses and the increase in selling and marketing expenses. EBITDA in Q1 2014 amounted to US$44m compared with EBITDA of US$51m in Q1 2013, a decrease of US$7m reflecting a decrease of 14%. Financial income, net in Q1 2014 amounted to US$1m as opposed to financial expenses, net of US$5m in Q1 2013, an increase of approximately US$6m resulting mainly from the decrease in financial expenses in respect of the Company’s debentures mainly due to fluctuations in the U.S. dollar-NIS exchange rate.