Another big deal forElbit Systems : The Israeli defense company announced today (Sunday) that it will receive $ 130 million from a country in the Asia-Pacific and will establish a production line for it for advanced artillery ammunition. it’s aboutA production complex ready for turn-key operation, which will allow serial production of artillery ammunition.
Many European countries have announced in recent weeks an increase in their defense budgets following the escalation of the Russian threat and the war in Ukraine. Among other things, Sweden plans to increase the defense budget to 2% of GDPGermany has announced an increase of more than $ 100 million to the army’s intensification budget.
Last week, Elbit announced that it had won a $ 27 million contract to supply its own tank shells as well as ammunition data entry units for the Swedish Army’s leopard tanks. A week earlier it announced it would provide an air control system to the Canadian military in a deal worth $ 8.6 million.
Elbit shares respond positively to the report and climb about 4% on the Tel Aviv Stock Exchange. Even before the jump today, the company enjoys a much higher positive return than the market average, and has climbed more than 37% since the beginning of the year compared to a very modest increase of about 3% in the Tel Aviv 35 and 90 indices.
The company is also traded on NASDAQ at a market value of more than $ 10 billion, thus overtaking both Teva and Amdocs, Novokure and many more. On the eve of the invasion of Ukraine, February 23, a share was traded Elbit For $ 178 and has since climbed about 30% to an all-time high of $ 233 a share, as of closing last Friday.
Bezalel Machlis, President and CEO of Elbit Systems, said that “winning contracts indicates the quality of our products and our proven ability to carry out technological collaborations in partner countries.”
Will publish reports on Tuesday
Elbit will publish its fourth quarter reports on Tuesday this week. recently The company has updated that due to an amendment to the law to encourage capital investments, which relates to the distribution of dividends, it will recognize a one-time expense of $ 80 million in the quarterly reports. However, the expense will not affect the Company’s results on a non-GAAP basis.
In the first three quarters of 2021, Elbit’s revenues grew by 15% to close to $ 3.8 billion. On a non-GAAP basis, less various accounting items, shareholders’ net income amounted to $ 273 million, which is $ 6.16 per share, an increase of 27.8% over the same period in 2020.