Elbit Systems' revenue, income rise in Q1 despite pandemic

Increased sales of military aircraft equipment and last year’s acquisition of the Harris Night Vision business from L3Harris Technologies lifted Elbit Systems’ revenue by 5% to USD1.1 billion in the first quarter of 2020, the Israeli company announced on 26 May.

Elbit’s net income totalled USD63.5 million in the quarter ending on 31 March, up 25% from the same period last year.

“Overall, we are satisfied with our performance in the quarter,” said Joseph ‘Josi’ Gaspar, Elbit’s chief financial officer.

Elbit has taken a series of steps to keep its business running smoothly during the coronavirus disease (Covid-19) pandemic, including increasing payments to suppliers to help them continue to operate, building “buffer inventories” in case supply chains are disrupted, and staggering the work shifts of manufacturing employees so they can socially distance.

“The extent of the impact of Covid-19 on the company’s performance will depend on future developments, including the duration and spread of the pandemic, the measures adopted by governments to limit the spread of the pandemic, and resulting actions that may be taken by our customers and our supply chain, all of which are uncertain,” the company said.

Elbit released its financial results a week after disclosing that its Cyberbit subsidiary, which trains cyber security teams, had received a USD70 million investment from US private equity firm Charlesbank Capital Partners. The investment leaves Elbit as a minority shareholder of Cyberbit.

“The investment should enable Cyberbit to further invest, grow, and realise its significant potential,” said Bezhalel ‘Butzi’ Machlis, Elbit’s president and CEO.