May 26, 2016 9:09 AM ET

Aerospace and Defense

Company Overview of Israel Aerospace Industries Ltd.

Company Overview

Israel Aerospace Industries Ltd. develops and produces military and commercial aerospace and defense systems worldwide. It provides space systems, including communication and observation satellites, launchers, ground stations and systems, and subsystems and components; and unmanned air systems comprising electro-optical payloads, inertial systems, maritime solutions, ground control and airborne systems, and data terminals. The company also offers defense systems; military aircraft and helicopters maintenance and upgrade services, including services for special mission aircraft, aero structures and wiring, training solutions and systems, operational support products and services, airborne sys...

Ben Gurion International Airport

Lod,  70100

Israel

Founded in 1953

Phone:

972 3 935 3111

Key Executives for Israel Aerospace Industries Ltd.

Chief Executive Officer and President
Age: 64
Chief Financial Officer and Executive Vice President of Finance
Age: 45
Executive Vice President of Operations
President of Europe Operations
Executive Vice President of ELTA Systems Ltd. Group
Age: 62
Compensation as of Fiscal Year 2015.

Israel Aerospace Industries Ltd. Key Developments

Israel Aerospace Industries Ltd. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended Dec. 31, 2015

Israel Aerospace Industries Ltd. reported consolidated earnings results for the fourth quarter and full year ended Dec. 31, 2015. The company's sales in the fourth quarter of 2015 amounted to USD 1,042 million compared with USD 975 million in the corresponding quarter of 2014, an increase of 6.8%. Operating income in the fourth quarter of 2015 amounted to USD 21 million (2% of sales) compared with USD 45 million (5% of sales) in the corresponding quarter of 2014. Net income in the fourth quarter of 2015 amounted to USD 18 million compared with net income of USD 2 million in the corresponding quarter of 2014. Positive cash flows from operating activities amounted to USD 214 million compared with positive cash flows from operating activities of USD 398 million in the fourth quarter of 2014. EBITDA was USD 37 million against USD 29 million reported last year. The company's sales in 2015 amounted to USD 3,708 million compared with USD 3,827 million in 2014, a decrease of 3%. The decrease in sales in 2015 compared with last year is mainly a result of the deferral of several complicated projects in the Systems Missiles & Space Segment and the decrease in the revenues of the Commercial Aircraft Group. Operating income in 2015 amounted to USD 47 million (1.3% of sales) compared with USD 141 million (3.7% of sales) in 2014, a decrease of 67%. EBITDA in 2015 amounted to USD 162 million compared with USD 253 million in 2014, a decrease of about 36%. Net income in 2015 amounted to USD 9 million (0.2% of sales) compared with net income of USD 27 million (0.7% of sales) in 2014. The decrease in net income is mainly a result of recording a nonrecurring loss of USD 27 million following a settlement reached with a major customer in the aeroassembly division. The Company's positive cash flows from operating activities in 2015 amounted to USD 47 million compared with negative cash flows from operating activities of USD 193 million in 2014.

IAI Plans to Lay Off 800

Israel Aerospace Industries Ltd. announced that it had reached agreement with the company's workers on a streamlining plan. The streamlining plan reported includes the layoff of 800 employees, and it comes after months of discussions and disputes between the management and workers. The initial demand of management was for the layoff of 1,200 employees and cuts in pay and conditions. For its part the workers committee demanded that there should also be layoffs of senior managers and an end to the excessive hiring of external consultants (a State Comptroller's report released in October 2015 revealed payments totaling ILS 56 million to various consultants).

Israel Aerospace Industries Ltd. Announces Executive Changes

Israel Aerospace Industries Ltd. announced that it is considering a plan for changes in its organizational structure that will reduce its staff expenses, as part of a comprehensive recovery plan that management is promoting, in view of the financial crisis that has afflicted the company in recent years. Signs of organizational changes in the company are already visible: IAI VP marketing Sharli Ben Ben-Chetrit will soon leave her position and be appointed the company's VP marketing in the US. VP special projects Jehezkel Grizim announced his resignation in recent after serving in senior positions at the company for decades.

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Date
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Merger/Acquisition
January 14, 2016
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