IAI logs record annual sales and net income
Israel Aerospace Industries (IAI) posted record sales and net income in 2020, the company announced on 18 March when revealing its annual financial results.
Sales reached $4.2 billion (up by 1.85%) and net income rose by 48% year on year to reach $133 million.
R&D (in-house and contracted) exceeded the $1 billion mark for the first time, increasing by 13% in 2020 to about $1.04 billion.
IAI attributed sales growth mainly to increased demand for goods and services from its Elta subsidiary and the Systems Missiles & Space Group. Sales in the IAI Military Group in 2020 increased by 14% to $3.51 billion.
However, the crisis in civil aviation amid the COVID-19 pandemic contributed to an 18% fall in revenues from the Aviation Group to $1.19 billion.
Exports in 2020 accounted for 71% of sales, which was similar to the proportion recorded in 2019.
The year-end order backlog was slightly lower in 2020 ($12.6 billion versus $13.5 billion in 2019). Export customers accounted for 79% of the 2020 total.
As part of our promise to deliver comprehensive coverage to our Defence Insight and Premium News subscribers, our curated defence news content provides the latest industry updates, contract awards and programme milestones.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.