After the storm of the company’s recruitment campaign, IAI publishes its first report for 2022 and is very positive, with an increase in sales and profitability, and even its aviation division turned a profit after years of losses.
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The manufacturer of the Arrow and Lightning-8 missiles, the Heron UAVs and the Gulfstream G280 executive jet, managed by CEO Boaz Levy, ended the first quarter with sales of $ 1.2 billion, an increase of $ 185 million (2.2%) compared to the same period last year. The main improvement in the results is from the operation of the missile and space division, following a deal to sell the Barak-8 air defense system to Morocco.
The net profit in the first quarter of 2022 grew by 86% to about $ 78 million and stood at about 6.5% of sales, compared to a net profit of about $ 42 million (about 4.1% of sales) in the corresponding quarter last year. The net profit of the military divisions in the first quarter of 2022 increased by about 29% to about $ 88 million compared to about $ 68 million in the corresponding quarter last year, an increase of about $ 20 million.
The Aviation Division’s net profit was about $ 7 million, compared to a net loss of about $ 8 million in the corresponding quarter last year. This is due to the return of civil aviation to levels of activity similar to those recorded before the Corona, and prosperity in the activity of converting passenger aircraft to cargo, especially in the new line for Boeing 777. However, the company reports an increase in inventory in aviation and radar division Elta.
IAI also benefited from the rise in the dollar, which raised its shekel income following foreign currency payments, and even reduced the value of its liabilities to employees, mainly for vacation days, which were estimated at $ 382 million at the end of 2021 and now stand at $ 332 million.
The report does not yet express the demand created by the war in Ukraine for air defense systems and intelligence, which has not yet.
The IAI is currently awaiting a High Court decision in a petition by the Movement for Quality of Government against the appointment of Chairman Amir Peretz, contrary to the decision of the Glaur Committee to appoint senior civil servants, which stated that Heferetz has too close a political affiliation with Defense Minister Bnei Gantz.