Israel Aerospace Industries reports sales of $3.3 billion for 2007

Israel Aircraft Industries said Thursday it has generated $3.3 billion in 2007 sales, an 18 per cent jump over a year earlier. Net profit was $127 million, down 3% from the previous year when it was $130m. Operating profit was $183 million, up 46% from $125 million in 2006.

Sales included $2.7 billion in exports, or 82% of all sales, compared to $2.8 billion in 2006.

IAI's 2007 order backlog reached a record high of $7.7 billion, with 83% earmarked for export.

"IAI's profitability in 2007 is higher than in 2006, despite the sharp revaluation in exchange rates," said Menashe Sagiv, corporate vice president, finance. "Most of the company's revenue is in US dollars, yet more than 50 per cent of our expenditures are in shekels. Appreciation of 9% increases our shekel expenses in terms of US dollars. This affects the financial results, primarily in the revaluation of surplus shekel liabilities."

"We have adopted an aggressive marketing policy in all our markets, which has borne fruit in the form of $4 billion in new contracts," said president, and CEO, Yitzhak Nissan. "The contracts with overseas customers contribute directly to the strength of the Israeli economy by generating orders from other Israeli companies."

Over the past two years IAI has set up up Stark Aerospace in the US, which produces unmanned aerial vehicles (UAVs) and stabilization and vision systems. It has also formed a joint venture with Indian conglomerate Tata Group for the development and manufacture of defence products.

"2007 demonstrated impressive technological accomplishments, including the launch of the Arrow missile and the Ofek 7 and TecSar satellites," Nissan said. "IAI continues to invest in developing world-class systems that will result in new market penetration in the coming years. We continue to focus on international cooperation and increased presence in the world markets."