September 29, 2016 7:55 PM 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 and radar payloads, inertial systems, maritime solutions, ground control and airborne systems, and data terminals. The company also offers theater defense systems; military aircraft and helicopters maintenance and upgrade services, including services for special mission and military aircraft, aero structures and wiring, training solutions and systems, operational support prod...

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: 65
Chief Financial Officer
Age: 46
Vice President of Operations
Executive Vice President of ELTA Systems Ltd. Group
Age: 63
Executive Vice President of the Military Aircraft Group
Compensation as of Fiscal Year 2016.

Israel Aerospace Industries Ltd. Key Developments

IAI Plans IPO

Israel Aerospace Industries Ltd. (IAI) is planning to raise up to $800 million in an Initial Public Offering (IPO). The offering of 20%- 25% of the IAI shares at a value of $3.2 billion will take place in 2017.

Israel Aerospace Industries Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2016

Israel Aerospace Industries reported earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company's amounted to USD 877 million compared with USD 928 million in second quarter of 2015, a decrease of 5.5%. The decrease in sales in second quarter of 2016 compared with second quarter of 2015 is mainly a result of the decrease in the revenues of the Military Electronics Segment (ELTA) and the Commercial Aircraft Segment, which was partly offset by the increase in the revenues of the Aircraft Maintenance and Overhaul Segment and the Systems Missiles & Space Segment Operating income in second quarter of 2016 amounted to USD 22 million (2.5% of sales) compared with USD 11 million (1.2% of sales) in second quarter of 2015. The increase in operating income is mainly due to the decrease in research and development expenses and the decrease in expenses for early retirement of employees compared with second quarter of 2015. EBITDA in second quarter of 2016 amounted to USD 52 million compared with USD 38 million in second quarter of 2015. Net income in second quarter of 2016 amounted to approximately USD 6 million (0.7% of sales) compared with net income of approximately USD 20 million (2.1% of sales) in second quarter of 2015. The decrease in net income is mainly a result of the increase in tax expenses. The company's negative cash flows from operating activities in second quarter of 2016 amounted to USD 69 million compared with negative cash flows from operating activities of USD 105 million in second quarter of 2015. The negative cash flows from operating activities mainly derive from changes in the company's working capital items mainly a decrease in payables from work in progress, a decrease in trade receivables and an increase in inventories and inventory in process, among others, due to delays in signing mega contracts. For the six months, the company reported sales of USD 1,736 million against USD 1,838 million a year ago. Operating income was USD 33 million against USD 31 million a year ago. Net income was USD 17 million against USD 22 million a year ago. EBITDA was USD 90 million against USD 82 million a year ago.

Israel Aerospace Signs German Drone Deal

Airbus Defense and Space will operate IAI's Heron 1 for gathering intelligence in Mali. The German Federal Ministry of Defense and the Airbus Defense and Space company have signed a contract with Israel Aerospace Industries Ltd. for the operation of Heron 1 unmanned aerial vehicles (UAVs) for use by the German air force in Mali in West Africa. Airbus will operate the UAVs in a model similar to the one in which it has operated IAI's UAVs for the German air force in Afghanistan since 2010. Under the new agreement, IAI will lease several UAV systems starting in November and until the beginning of 2018 for intelligence gathering purposes. The deal is believed to amount to tens of millions of dollars.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
January 14, 2016
TSG IT Advanced Systems Ltd.
 

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