Elbit Posts Upbeat Q3 Earnings

Israeli firm Elbit Systems

reported better-than-expected third-quarter earnings. Net income attributable to the company's shareholders dropped to $35.0 million, from $49.6 million, in the year-ago quarter. Elbit posted its quarterly earnings, excluding one-time items, of $1.03 per diluted share, compared to $1.32 per share, in the year-ago period. Its revenue dropped to $722.7 million versus $730.6 million. However, analysts were expecting earnings of $0.79 per share on revenue of $722 million. The company's financial expenses increased to $23.4 million from $6.6 million. Gross profit slipped to $203.0 million from $207.4 million, while non-GAAP gross profit fell to $208.4 million from $212.9 million. Operating income declined to $60.1 million from $61.1 million. As of September 30, 2014, its backlog of orders surged to $6.2 billion, from $5.7 billion as of September 30, 2013. Elbit also announced its plans to pay a dividend of $0.32 per share for the quarter, unchanged versus the second quarter. Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: "As we previously disclosed, our third quarter profit was affected by increased financial expenses. However, as reflected by our operating income, the ongoing business performance continued to show stability in the quarter. We are encouraged by the continued growth in the backlog and by the increase in revenue in Latin America and Asia-Pacific in the quarter." Elbit shares rose 1.39% to $59.73 in pre-market trading.