Continued Strong Growth With Record Backlog of Orders and Revenues;
HAIFA, Israel, August 12 /PRNewswire-FirstCall/ -- Elbit Systems
Ltd. (the "Company") (NASDAQ:ESLTNASDAQ:TASE:NASDAQ:ESLT), the
international defense company, today reported its consolidated
results for the second quarter ended June 30, 2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441) The Company's
backlog of orders as of June 30, 2008 totaled $5,050 million, as
compared with $4,922 million as of March 31, 2008. Approximately
71% of the backlog relates to orders outside of Israel.
Approximately 63% of the Company's backlog as of June 30, 2008, is
scheduled to be performed during the second half of 2008 and during
2009. As previously announced, during the second quarter the
Company reported two events that in the aggregate had minimal total
net effect on net profit. These were a one-time net after tax
expense provision of $10 million, related to a court ruling against
a U.S. subsidiary of the Company. The other was a significant
contribution to net income, due to a high level of revenues
generated from the short-term delivery contract revenues in the
quarter. In comparing financial results of the second quarter 2008
to the second quarter in 2007, the following should be noted.
During the second quarter of 2007, the Company completed the
acquisition of Tadiran Communications Ltd. Following the
acquisition, the Company recorded in the second quarter of 2007
expenses of $27.1 million, comprised of $16.6 million in In-Process
Research & Development write-off expenses recorded under
operating expenses, and $10.5 million in restructuring expenses
recorded under cost of goods sold. Consolidated revenues for the
second quarter of 2008 increased by 39.5% to $653.2 million, from
$468.2 million in the second quarter of 2007. Gross profit for the
second quarter of 2008 increased by 55.4% to $197.4 million (30.2%
of revenues), as compared with gross profit, excluding expenses
related to the Tadiran acquisition, of $127.0 million (27.1% of
revenues) in the second quarter of 2007. Consolidated net income
for the second quarter of 2008 increased by 31.3% to $31.2 million
(4.8% of revenues), as compared with net income, excluding net
expenses related to the Tadiran acquisition, of $23.7 million (5.1%
of revenues) in the second quarter of 2007. Diluted earnings per
share for the second quarter of 2008 were $0.73, as compared with
$0.56, excluding expenses related to the Tadiran acquisition, for
the second quarter of 2007. Operating Cash flow during the first
six months of 2008 was $129.8 million. The President and CEO of
Elbit Systems, Joseph Ackerman, commented: "I am pleased to report
another quarter of strong growth with record financial results, and
very significantly, our backlog grew and crossed the $5 billion
milestone. While all parts of the business are performing in
accordance with plans, our subsidiaries in particular performed
well and were an important factor in our improved margins this
quarter." Mr. Ackerman continued, "Company-wide, we continue to
improve with sustained growth on both the top and bottom line,
driven both by strong organic growth as well as the contribution
through our acquisitions. Our goal of building our business into a
world-class and globally diversified defense company is ever more
becoming an actuality, and we remain confident of our continued
success into the long-term future." The Board of Directors declared
a dividend of $0.20 per share for the second quarter of 2008. The
dividend's record date is August 26, 2008, and the dividend will be
paid on September 8, 2008, net of taxes and levies, at the rate of
16.88%. Conference Call The Company will also be hosting a
conference call on the same day, Tuesday, August 12, at 9am ET. On
the call, management will review and discuss the results and will
be available to answer questions. To participate, please call one
of the teleconferencing numbers that follow. Please begin placing
your calls at least 10 minutes before the conference call
commences. If you are unable to connect using the toll-free
numbers, please try the international dial-in number. US Dial-in
Numbers: 1-866-345-5855 UK Dial-in Number: 0-800-404-8418 ISRAEL
Dial-in Number: 03-918-0688 INTERNATIONAL Dial-in Number:
+972-3-918-0688 at: 9am Eastern Time; 6am Pacific Time; 2pm UK time
and 4pm Israel time This call will be broadcast live on Elbit
Systems' web-site at http://www.elbitsystems.com/. An online replay
will be available from 24 hours after the call ends. Alternatively,
for two days following the end of the call, investors will be able
to dial a replay number to listen to the call. The dial-in numbers
are: 1-877-332-1104 (US) or +972-3-925-5948 (Israel and
International). About Elbit Systems Ltd. Elbit Systems Ltd. is an
international defense electronics company engaged in a wide range
of defense-related 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 air vehicle (UAV) systems,
advanced electro-optics, electro-optic space systems, EW suites,
airborne warning systems, ELINT systems, data links and military
communications systems and radios. The Company also focuses on the
upgrading of existing military platforms and developing new
technologies for defense, homeland security and commercial aviation
applications. This press release contains forward-looking
statements (within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended) regarding Elbit Systems Ltd. and/or its
subsidiaries (collectively the Company), to the extent such
statements do not relate to historical or current fact. Forward
Looking Statements are based on management's expectations,
estimates, projections and assumptions. 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 and uncertainties, which are difficult to predict.
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;
differences in anticipated and actual program performance,
including the ability to perform under long-term fixed-price
contracts; 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. The Company does not undertake to
update its forward-looking statements. (FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousand of US
Dollars) June 30 December 31 2008 2007 Unaudited Audited Assets
Current Assets: Cash and short term deposits 427,278 375,700 Trade
receivable and others 579,887 555,265 Inventories, net of customer
advances 583,544 480,603 Total current assets 1,590,709 1,411,568
Investments in affiliated companies & other 68,454 66,161
companies Long-term receivables & others 337,286 314,568 Fixed
Assets, net 370,211 350,514 Other assets, net 615,448 632,799
2,982,108 2,775,610 Liabilities and Shareholder's Equity Current
liabilities 1,316,025 1,237,049 Long-term liabilities 1,034,951
982,214 Minority Interest 46,769 20,085 Shareholder's equity
584,363 536,262 2,982,108 2,775,610 ELBIT SYSTEMS LTD. CONSOLIDATED
STATEMENTS OF INCOME (In thousand of US Dollars, except for per
share amounts) Six Months Ended Three Months Year Ended Ended June
30 June 30 December 31 2008 2007 2008 2007 2007 Unaudited Unaudited
(Audited) Revenues 1,269,230 871,758 653,167 468,158 1,981,761 Cost
of revenues 903,474 641,266 455,764 341,204 1,454,913
Restructurirng expenses - 10,482 - 10,482 10,482 Gross Profit
365,756 220,010 197,403 116,472 516,366 Research and development
76,124 53,074 38,089 28,981 126,995 expenses, net Marketing and
selling 103,303 71,577 53,639 39,206 157,411 expenses General and
administrative 77,841 44,418 45,692 24,100 107,447 expenses
Acquired IPR&D - 16,560 - 16,560 16,560 Total operating
expenses 257,268 185,629 137,420 108,847 408,413 Operating income
108,488 34,381 59,983 7,625 107,953 Financial expenses, net
(16,973) (7,962) (12,373) (5,034) (19,329) Other income (expenses),
net 4,213 95 117 (18) 368 Income before taxes on 95,728 26,514
47,727 2,573 88,992 income Taxes on income 11,684 12,122 3,762
5,389 13,810 84,044 14,392 43,965 (2,816) 75,182 Equity in net
earnings of affiliated companies and partnership 5,946 5,773 3,381
2,373 14,565 Minority interest in (26,682) (1,757) (16,191) (248)
(13,038) earnings of subsidiaries Net income (loss) 63,308 18,408
31,155 (691) 76,709 Earnings per share Basic net earnings (loss)
$1.50 $0.44 $0.74 $(0.02) $1.82 per share Diluted net earnings
(loss) $1.48 $0.43 $0.73 $(0.02) $1.81 per share Company Contact:
IR Contact: Joseph Gaspar, Executive VP & CFO Ehud Helft /
Kenny Green Dalia Rosen, Head of Corporate GK Investor Relations
Communications Tel: +1-646-201-9246 Elbit Systems Ltd. E-mail: Tel:
+972-4 831-6663 Fax: +972-4-831-6944 E-mail: DATASOURCE: Elbit
Systems Ltd CONTACT: Company Contact: IR Contact: Joseph Gaspar,
Executive VP & CFO, Dalia Rosen, Head of Corporate
Communications, Elbit Systems Ltd., Tel: +972-4 831-6663, Fax:
+972-4-831-6944, E-mail: , ; Ehud Helft / Kenny Green, GK Investor
Relations, Tel: +1-646-201-9246, E-mail:
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