Elbit Systems Reports Strong Third Quarter 2008 Results

HAIFA, Israel , November 25 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT, TASE: ESLT), the international defense company, today reported its consolidated results for the third quarter ended September 30, 2008...


HAIFA, Israel , November 25 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT, TASE: ESLT), the international defense company, today reported its consolidated results for the third quarter ended September 30, 2008 .

(Logo: http://www.newscom.com/cgi-bin/prnh/20080408/300441 )

Consolidated revenues for the third quarter of 2008 increased by 29.3% to $671.2 million, from $518.9 million in the third quarter of 2007.

Gross profit for the third quarter of 2008 increased by 41.5% to $198.3 million (29.5% of revenues), as compared with gross profit of $140.2 million (27% of revenues) in the third quarter of 2007.

Consolidated net income for the third quarter of 2008 increased by 35% to $35.6 million (5.3% of revenues), as compared with net income of $26.4 million (5.1% of revenues) in the third quarter of 2007.

Operating cash flow during the first nine months of 2008 was $112.9 million.

Diluted earnings per share for the third quarter of 2008 were $0.83, as compared with $0.62 for the third quarter of 2007.

The Company's backlog of orders as of September 30, 2008 totaled $4,872 million, as compared with $5,050 million as of June 30 2008 and $ 4,624 million as of December 31 2007. Approximately 71% of the backlog relates to orders outside of Israel . Approximately 57% of the Company's backlog as of September 30, 2008 is scheduled to be performed during the remainder of 2008 and during 2009.

During the third quarter, two events occurred that in the aggregate had minimal total net effect on net profit. There was one-time income of $6 million related to a legal settlement involving a U.S. subsidiary of the Company, which benefited the general and administrative costs. There was also a financial expense related to the write-off of Auction Rate Securities totaling $5.7 million.

The President and CEO of Elbit Systems, Joseph Ackerman , commented, "I am pleased to report another quarter of solid progress at Elbit Systems, with growth across all areas of operation and in all geographies. In addition, in the first three quarters of 2008, we have already surpassed the whole of last year's net income, achieving just shy of $100 million in net profit. While our backlog was slightly below that of last quarter, it remains a strong backlog, and together with numerous new business opportunities, supports the continuous growth of the Company."

Mr. Ackerman continued: "We are taking every measure to keep a cap on and rationalize expenses. This is to ensure we are prepared for all eventualities and that we are able to maintain our profitability, momentum and technological leadership, in the coming months ahead."

The Board of Directors declared a dividend of $0.22 per share for the third quarter of 2008. The dividend's record date is December 9, 2008 , and the dividend will be paid on December 22, 2008 , net of taxes and levies, at the rate of 16.82%.

Conference Call

The Company will also be hosting a conference call today, Tuesday, November 25 , at 8:30am ET . On the call, management will review and discuss the results and will be available to answer questions.

To participate, please call one of the teleconferencing numbers that follow. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

at: 8:30am Eastern Time ; 5:30am Pacific Time ; 1:30pm UK time and 3:30pm Israel time

This call will be broadcast live on Elbit Systems' web-site at http://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.

Alternatively, for two days following the end of the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are:

1-888-269-0005 (US) or +972-3-925-5951 ( Israel and International).

About Elbit Systems Ltd.

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