UPDATE: Elbit Posts Upbeat Q2 Profit

Elbit Systems

reported better-than-expected second-quarter profit. Elbit's quarterly net income declined to $43.9 million, from $49.6 million in the year-ago period. The year-ago results benefited from income related to a legal settlement, net of expenses, of $7.6 million. The company's non-GAAP net income rose to $52.6 million from $50.4 million. The Haifa, Israel-based company posted quarterly earnings, excluding one-time items, of $1.23 per share, compared to $1.19 per share in the year-ago period. Its revenue came in at $702.6 million versus $702.9 million. However, analysts were expecting earnings of $1.22 per share on revenue of $718.7 million. Non-GAAP operating income climbed to $73.1 million, from $70.5 million in the year-ago period. Elbit's backlog of orders climbed to $6.2 billion versus $5.8 billion. Its research and development expenses, net, rose to $52.2 million from $51.5 million, while marketing and selling expenses fell to $50.3 million from $57.1 million. Elbit's operating cash flow declined to $15.8 million in the first half of 2014, versus $60.9 million in the year-ago period. The company also announced its plans to pay a dividend of $0.32 per share in the second quarter. Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems said, "Our second quarter results demonstrate continued solid performance. These achievements are a result of our ongoing efforts to focus on efficiently managing our operations while increasingly leveraging our global inter company resources and synergies.” Elbit shares fell 0.22% to close at $62.78 yesterday.