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Israel Aerospace Industries, unfazed by corona, nets record $2 billion

Despite the global financial crisis, Israel Aerospace Industries ends the first half of 2020 with the highest sales in the history of the company.

By Lauren Marcus, World Israel News

Israel Aerospace Industries Ltd. reported sales of $2 billion in the first half of 2020, the highest ever for the nearly 70-year-old company.

IAI, Israel’s largest national military and civilian security defense company, released its financial statements for the first half of 2020 on Sunday.

The second quarter of 2020 totaled $1.06 billion in sales, up 7.6 percent from $1.986 billion recorded by the company during the same period in 2019.

Most of the sales stemmed from the company’s military division, which saw an 18 percent increase from $1.448 billion in 2019 to $1.706 billion in 2020.

“The increase arises from the sales of the Systems Missiles & Space Group and the ELTA Group [defense and intelligence electronics subdivision of IAI],” said IAI in a press release.

The Aviation Division recorded a decrease of about 15 percent in sales. But IAI’s net income was 64 percent higher than last year, with about $82 million in the first half of 2020 compared to $50 million in 2019.

IAI is a state-owned company and manufactures many military systems used by the Israel Defense Forces. The company designs, produces, and maintains aircraft including fighter aircraft and drones.

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While the company focuses on aviation and aerospace products, it also creates systems that are used by the naval and ground forces of the IDF. Some IAI products are purchased by foreign militaries.

According to the report, IAI has an order backlog totaling $13.2 billion.

“We are well aware of the serious ramifications of the global crisis on the Aviation Group and have prepared ourselves as an organization to the upcoming challenges in this industry,” said IAI’s CEO, Nir Sheffer, in a statement.

“IAI will continue to lead Israel’s homeland defense industries towards more achievements and feats for the security and prosperity of the State of Israel.”