Israel Aircraft Industries profits soar 400 percent
IAI recorded USD 25 million profit in 2005; sales totaled USD 2.3 billion – a 14 percent increase since 2004
In 2005 Israel Aircraft Industries (IAI) recorded a profit of USD 25 million – a 400 percent increase compared to 2004. The company’s sales last year summed USD 2.34 billion - 24 percent more than in 2004.
In 2005, IAI received new orders from customers worth a total of USD 3.4 billion. Accumulated orders by the end of 2005 had reached USD 6.3 billion, a 17 percent increase since 2004.
“The growth of IAI is happening in parallel both in the military and civilian sectors,” Chairman of IAI's Board of Directors Yair Shamir said.
“Today, the civilian sector accounts for 5 percent of IAI’s work. I see great importance in developing both sectors until they are equivalent in size.”
IAI’s newly appointed CEO Yitzhak Nissan said that “IAI has a large accumulation of orders which will allow the company to grow further in upcoming years. In the first quarter of 2006, we received more orders, worth some USD 1.7 billion. This shows that our systems and products are attractive to consumers in the local and international markets. I believe that in 2006 we’ll see further improvements in IAI’s business results.”
Comptroller’s tough report
Corporate Vice President of Finance for IAI, Menashe Sagiv, added: “The company’s capital is growing every year. The cash flow has improved. The banking arrangement signed in December 1996 is coming to an end soon after the company fulfilled all of its obligations to the banks. Our loan inventory has gone down, and our sources of funding available have increased and improved.”
At the end of 2005, the state comptroller published a severe report against Israeli Aircraft Industries.
In the report, the comptroller exposed grave faults in the deal by which Alta, a daughter company of IAI, bought 30 percent of Elisra from the Koor Concern. The report placed the blame for the failed deal with Alta’s chairman at the time, Moshe Keret. The comptroller concluded that the purchase of Elisra caused the IAI tens of millions of shekels in damages. He blamed Keret for carrying out the deal with insufficient information and even demanded he be fired.
