Arms Race is On, Says Arms Manufacturer
Israel-based defense contractor Elbit has seen an 11% increase in backlog in 2017 compared to 2016, largely driven by a worldwide increase in defense budgets
For daily updates, subscribe to our newsletter by clicking here.The call followed the publication of Elbit's annual financial reports for 2017, for which the company reported revenues of $3.3 billion and GAAP gross profit of $997.9 million, compared to $959.6 million in 2016. The company stated the taxes it paid in the fourth quarter of 2017 included a $10.9 million adjustment to deferred tax assets, a result of the recent U.S. tax reform.
Elbit is currently in the final stages of completing the acquisition of state-owned Israeli arms manufacturer IMI Systems Ltd. (Israeli Military Industries), which manufactures weapon systems for land, air, and naval combat, and is also the developer of the Uzi submachine gun. Elbit is set to pay $523 million.In the call, Mr. Machlis stated that much of Elbit's interest in IMI stems from the synergy it could provide with Elbit's current operations, especially in the rocket segment. He also said that Elbit is actively looking for new acquisitions in target markets.