Elbit Systems Ltd. advanced the most in almost three months as Israel’s largest non-governmental defense company got $315 million in orders from the country’s Ministry of Defense.
The shares increased 3.2 percent, the biggest advance since Oct. 2, to 149.2 shekels at the close in Tel Aviv. The company, which depends on its home country for 16 percent of revenue, has lost 4.7 percent this year compared with a 9.7 percent gain for the S&P Aerospace & Defense Index.
“This is undoubtedly positive news and supports our view that back-orders from the Israel Defense Forces will come to fruition in 2013,” said Ella Fried, a senior analyst at the capital markets division of Tel Aviv-based Bank Leumi Le-Israel. She has an outperform rating on the stock.
The combined orders include sales of unmanned systems, electronic warfare and avionics, the company said in a statement to the Tel Aviv Stock Exchange. The company’s backlog of orders was $5.53 billion as of Sept. 30, compared with $5.47 billion on June 30 and $5.45 billion on March 31.
Elbit agreed to supply battle management systems for helicopters and virtual training for the Israeli Air Force’s fighter aircraft in a $75 million, six-year deal. The company will supply drones and maintain them for eight years in a $90 million order. The company will also provide $90 million in systems for F-15 and F-16 fighter aircraft and for the navy’s missile vessels over a four-year duration.