IAI posts net loss of US$110m for 2016

Israel Aerospace Industries, Israel’s largest national military and civilian security defense company, issued its consolidated financial statements for the year ended December 31, 2016. The Company reported new engagements signed with customers at a scope exceeding US$4bn. The scope of new engagements derives from a record number of global medium-sized transactions signed, alongside existing long-term contracts with the MOD. The result is a major increase in order backlog: in excess of US$9bn, representing about 2.5 years of operation (as opposed to US$8.5bn at the end of 2015). The Company reported sales totaling US$3.6bn and a net loss of US$110m. The loss mainly arises from a non-recurring provision in the amount of US$162m for the early retirement of more than 800 employees in the context of the growth agreement signed in the third quarter of 2016. Save this provision, the Company would have recognized (adjusted) net income totaling US$24m. The Company also reported positive cash flows from operating activities of US$156m.