HAIFA, Israel, Oct. 26, 2020 /PRNewswire/ -- Elbit
Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT)
("Elbit Systems" or "the Company") announced today that, as a
result of the impact of the COVID-19 pandemic, Elbit Systems
experienced reduced demand for the products and services it
supplies to the commercial aviation markets.
The significant slowdown in commercial air traffic, and the
expectation that a commercial air traffic recovery to 2019 levels
will likely take a number of years, have reduced the demand for
products and services for the commercial aviation markets.
Additionally, manufacturers of aircraft for these markets have
announced plans to reduce production rates to adapt to the lower
demand.
Following a review of the economic impact on the Company's
assets overall, and those assets impacted by the commercial
aviation industry in particular, the Company expects to record in
the third quarter of 2020 non-cash expenses related to impairment
of assets and inventory write-offs, due to COVID-19, in the amount
of approximately $60 million.
These expenses will be recorded mainly in the "Cost of
Revenues" line item in the Consolidated Statement of Income
and will be eliminated in the non-GAAP results as a category of
expenses that are not part of the Company's regular on-going
business.
These expenses will be included in the financial results for the
third quarter of 2020 to be reported by the Company in its press
release for the quarter, which is planned to be released in
November 2020.
About Elbit Systems
Elbit Systems Ltd. is an international high technology company
engaged in a wide range of defense, homeland security and
commercial programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of aerospace, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW suites, signal
intelligence systems, data links and communications systems,
radios, cyber-based systems and munitions. The Company also focuses
on the upgrading of existing platforms, developing new technologies
for defense, homeland security and commercial applications and
providing a range of support services, including training and
simulation systems.
For additional information, visit: https://elbitsystems.com/,
follow us on Twitter or visit our official Facebook, Youtube and
LinkedIn Channels.
Contacts:
Contacts:
Company Contact:
Joseph Gaspar, Executive VP
& CFO
Tel: +972-4-8316663
j.gaspar@elbitsystems.com
Rami Myerson, Director,
Investor Relations
Tel: +972-77-2948984
rami.myerson@elbitsystems.com
David Vaaknin, VP, Head of Corporate Communications
Tel: +972-77-2946691
david.vaaknin@elbitsystems.com
IR Contact:
Ehud Helft
Kenny Green
GK Investor
Relations
Tel: +1-646-201-9246
elbitsystems@gkir.com
This press release may contain forward–looking statements
(within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Israeli Securities Law, 1968) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to
the extent such statements do not relate to historical or current
facts. Forward-looking statements are based on management's current
expectations, estimates, projections and assumptions about
future events. Forward–looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, as amended. These statements are not guarantees of
future performance and involve certain risks,
uncertainties and assumptions about the Company, which are
difficult to predict, including projections of the Company's future
financial results, its anticipated growth strategies and
anticipated trends in its business. Therefore, actual future
results, performance and trends may differ materially from these
forward–looking statements due to a variety of factors, including,
without limitation: scope and length of customer contracts;
governmental regulations and approvals; changes in governmental
budgeting priorities; general market, political and economic
conditions in the countries in which the Company operates or sells,
including Israel and the United States among others; changes in
global health and macro-economic conditions; differences in
anticipated and actual program performance, including the ability
to perform under long-term fixed-price contracts; changes in the
competitive environment; and the outcome of legal and/or regulatory
proceedings. The factors listed above are not all-inclusive,
and further information is contained in Elbit Systems Ltd.'s latest
annual report on Form 20-F, which is on file with the U.S.
Securities and Exchange Commission. All forward–looking statements
speak only as of the date of this release. Although the Company
believes the expectations reflected in
the forward-looking statements contained herein are
reasonable, it cannot guarantee future results, level of activity,
performance or achievements. Moreover, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements.
The Company does not undertake to update its forward-looking
statements.
Elbit Systems Ltd., its logo, brand, product, service and
process names appearing in this Press Release are the trademarks or
service marks of Elbit Systems Ltd. or its affiliated
companies. All other brand, product, service and process
names appearing are the trademarks of their respective
holders. Reference to or use of a product, service or process
other than those of Elbit Systems Ltd. does not imply
recommendation, approval, affiliation or sponsorship of that
product, service or process by Elbit Systems Ltd. Nothing contained
herein shall be construed as conferring by implication, estoppel or
otherwise any license or right under any patent, copyright,
trademark or other intellectual property right of Elbit Systems
Ltd. or any third party, except as expressly granted herein.
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SOURCE Elbit Systems Ltd.