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Elbit Systems Ltd

Elbit Systems Ltd (ESLT)

257.33
-1.13
(-0.44%)
Closed December 27 4:00PM
258.99
1.66
( 0.65% )
Pre Market: 6:50AM

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Monksdream Monksdream 10 months ago
ESLT new 52 week high
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$Pistol Pete$ $Pistol Pete$ 9 years ago
$ESLT Daily Chart



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BorisB BorisB 10 years ago

http://www.bloomberg.com/news/articles/2015-04-11/israeli-drone-maker-has-6-billion-backlog-and-a-red-hot-stock
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ET2010 ET2010 12 years ago
Why doesn`t Elbit take over Suspect Detection Systems...?

Than Elbit gets a fantastic system which is called cogito and Elbit is much bigger in the security market...
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midastouch017 midastouch017 17 years ago
Elbit Systems revenue jumps to nearly $2 billion
70% of the firm's backlog is for orders outside of Israel.
Globes' correspondent 11 Mar 08 10:09
Military electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today reported its consolidated results for the fourth quarter and year-ended December 31, 2007.
Fourth quarter revenue increased by 26.5% to $591.1 million in 2007, compared to $467.4 million in the corresponding quarter of 2006.


During the fourth quarter of 2007, the Company had a $10 million financial expense related to the write-off of investments Auction Rate Securities, which were rated AAA or AA when acquired, and which have experienced multiple failed auctions due to a lack of liquidity in the market for these securities.

Elbit's orders backlog as of December 31, 2007 reached $4.62 billion, an increase of 22%, as compared to $3.79 billion at the end of 2006. 70% of the backlog relates to orders outside of Israel. Approximately 70% of the firm's backlog as of December 31, 2007 is scheduled to be performed during 2008 and 2009.

Gross profit for the fourth quarter of 2007 was $156.2 million, as compared to gross profit of $100.2 million in the fourth quarter of 2006, and the gross profit margin in the fourth quarter of 2007 was 26.4%, as compared to 21.4% in the fourth quarter of 2006.

Net profit for the fourth quarter of 2007 increased by 33.2% to $31.9 million, compared to $24 million for the same period of 2006. Diluted earnings per share for the fourth quarter of 2007 was $0.75, as compared to $0.57 for the fourth quarter of 2006.

Consolidated revenue for the full year of 2007 increased by 30% to $1.98 billion, as compared to $1.52 billion in 2006.

Gross profit for the year ended December 31, 2007 was $516.4 million, as compared to gross profit of $373.5 million in 2006, and the gross profit margin in 2007 was 26.1%, as compared to 24.5% in 2006.

One-time charges related to the completion of the acquisition of Tadiran Communications on April 26, 2007, which were charged in the second quarter, impacted full year results. Elbit Systems recorded $27.1 million in expenses in relation to the acquisition, with an in-process research & development (“IPR&D”) write-off of $16.6 million recorded under operating expenses, and restructuring expenses of $10.5 million recorded under cost of goods sold, which negatively affected the gross profit rate by 0.5%.

Net profit for the year ended December 31, 2007 increased by 6.2% to $76.7 million, as compared to $72.2 million in 2006. Diluted earnings per share in 2007 were $1.81, as compared to $1.72 in 2006.

Excluding the above one-time, net charges related to the acquisition of Tadiran Communications, net earnings for the year ended December 31, 2007 were $101 million, and earnings per shares reached $2.39.

Elbit Systems president and CEO Joseph Ackerman commented that "2007 was a banner year in which we continued our top line growth while producing record net profit, EPS, backlog and operating cash flow. We have been very successful in further globalizing our business, with strong growth in Europe, and we now have presence in important and diversified geographic regions, with a cutting edge comprehensive product portfolio for the evolving needs of the markets in which we are active."

Elbit Systems, with its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.

Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2008

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genisi genisi 17 years ago
UBS downgrades Elbit Systems

http://globes-online.com/serveen/globes/docview.asp?did=1000307303&fid=942

"Elbit is currently trading at a premium to the sector."
Globes correspondent 7 Feb 08 11:24
UBS has cut its recommendation for defense company Elbit Systems (Nasdaq: ESLT; TASE: ESLT) from "Buy" to "Neutral". Nevertheless, UBS analysts Darren Shaw and Roni Biron raise their price target for the stock from $51 to $63. This compares to a closing price in New York yesterday of $57.51, which gives the company a market cap of $2.42 billion.

Shaw and Biron say that , although Elbit shows rapid revenue growth, its profitability lags its sector, while its share is at a premium.

"Elbit is a fast-growing defence player, offering a wide range of electronic and electro-optic solutions. Over the past several years, the company has boosted its profile via M&A and strategic partnerships. This has translated into very strong deal-flow, including ‘high-profile projects such as Watchkeeper in the UK." Shaw and Biron write.

"We expect Elbit to end 2007 with nearly $2 billion in revenue, more than double its 2004 level. This reflects organic growth of about 20% in the past two years, coupled with M&A activity. Elbit’s order backlog has shown a similar trend, reaching a record level of $4.55 billion, or 2.3x 2007 estimated sales. We expect 2008 to reflect revenue growth in excess of 17% and an additional increase in backlog.

"While Elbit’s growth and visibility are at the higher end of the defence spectrum, its profitability is below average. We believe margins should improve over time on the back of operating leverage and efficiency gains. However, we expect integration costs, and currency exposure to weigh on profitability in the near term.

"We raise our price target to $63 from $51 but downgrade our rating to Neutral from Buy. Elbit is currently trading at a premium to the sector. While this is justified, in our view, given Elbit’s quality play on defence electronics, we believe the risk-reward is mostly priced in at current levels. Our price target is DCF based," the report concludes.
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midastouch017 midastouch017 17 years ago
"We'll maintain two-digit growth"
Elbit Systems CEO Joseph Ackerman assesses his market.
Uri Shuster 15 Nov 07 17:07
The impressive rise seen recently in the stock of Elbit Systems (Nasdaq: ESLT; TASE: ESLT) was probably less to do with anticipation of the exceptionally good third quarter results reported yesterday, and more to do with the realization that anyone who wants to carry on investing in stocks needs to expand the defensive element of the portfolio, a need which the company meets precisely. There was nothing unusual in Elbit Systems' financials, and no unpleasant surprises, which amounts to a privilege these days.
Company president and CEO Joseph Ackerman believes that the two-digit growth will be maintained in the coming years. "Once, if you were to ask me, I would say that the goal was high one-digit growth. Now, I allow myself to say low two-digits," says Ackerman, and explains, "The budgets of armies around the world have been growing at 3-4% annually in the past few years, and we are growing faster than the market, even though it certainly isn't easy. Our business is military electronics, and it makes no difference whether there's peace or war, there's always demand for the products. What's more, today armies buy fewer platforms and more systems, and that's exactly what we do. Therefore I estimate that in the next three to four years we'll maintain a two-digit growth rate. 2008 is more or less clear to us, and it will be better than 2007."


In Elbit Systems' field of activity, size is critical. Although the company is a bulldozer in local terms, as witness its almost unbelievable $4.55 billion orders backlog, it is small in comparison with similar companies overseas.

"The figures are very clear today, the customer seeks a solution from a single supplier, and to provide it we must make acquisitions and expand our range, and thereby also reduce costs, for example marketing costs, which a small company in this area finds hard to meet," Ackerman explains, and adds, "The Israeli scale is deceptive. We're still not even half the average size of defense companies around the world, and so we must persist with a strategy of mergers and acquisitions."

Nevertheless, Ackerman reckons that it will take time till the next acquisition. "In the short term we must digest the acquisition of Tadiran Communications and our other acquisitions. So I see 2008 as a year of integration, and not so much of acquisitions. At the same time, we're always on the lookout, and we won't pass up on acquisition opportunities."

Published by Globes [online], Israel business news - www.globes.co.il - on November 15, 2007

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midastouch017 midastouch017 17 years ago
Elbit Systems Reports Second Quarter 2007 Results
Tuesday August 14, 3:56 am ET
Backlog of Orders at Record $4.2bn
Revenues Reached Record $468m, Up 36% Year-Over-Year
Cash Flow of $130 Million for First Six Months, Up 24% Year-Over-Year

HAIFA, Israel, August 14 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT - News), the international defense company, today reported its consolidated results for the second quarter ended June 30, 2007.

Completion of Acquisition of Tadiran Communications. On April 26, 2007, the Company completed the acquisition of the outstanding shares of Tadiran Communications Ltd. ("Tadiran"). Following the acquisition, the Company fully consolidated the results of Tadiran. On July 12, 2007, the Company reported that it anticipated the acquisition related expenses in the second quarter to be within a range of $25 - 30 million. The Company recorded $27.1 million in expenses in relation to the acquisition as follows: In-Process Research & Development ("IPR&D") write-off of $16.6 million recorded under operating expenses, and restructuring expenses of $10.5 million recorded under cost of good sold.

Backlog of orders as of June 30, 2007 reached a record $4,196 million, compared with $3,786 million as of December 31, 2006. 73% of the backlog is for sales outside Israel, and approximately 61% of the backlog is scheduled to be performed by the end of 2008. The majority of the balance is scheduled to be performed in 2009 and 2010.

Consolidated revenues for the second quarter of 2007 increased by 36% to $468.2 million, from $344.8 million in the second quarter of 2006.

Reported gross profit for the second quarter of 2007 increased by 30% to $116.5 million (24.9% of revenues), as compared with gross profit of $89.6 million (26.0% of revenues) in the second quarter of 2006. Gross profit for the quarter included the $10.5 million restructuring charge relating to the completed acquisition of Tadiran. Excluding this charge, gross profit in the second quarter of 2007 increased by 42% to $127.0 million (27.1% of revenues).

Reported consolidated net loss for the second quarter of 2007, including the $27.1 million ($24.4 million net) in expenses recorded in relation with the completed acquisition of Tadiran, was $0.7 million, compared with a net income of $15.1 million (4.4% of revenues) in the second quarter of 2006. Loss per diluted share for the second quarter of 2007 was $0.02, as compared with earnings per diluted share of $0.36 for the second quarter of 2006. Consolidated net income for the second quarter of 2007, excluding the IPR&D write-off and restructuring expenses was $23.7 million, or $0.56 per diluted share.

Operating Cash flow generated during the first six months of the year reached a record $129.7 million.

The President and CEO of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report another quarter of growth that is highlighted by record backlog and cash flow. I would like to underline our organic growth that amounted to more than 20% and made a substantial contribution to our overall growth of 36% following the acquisition of Tadiran. We have found that Tadiran has highly professional and talented employees, advanced technologies and a strong presence in the worldwide market. We believe the combined company will quickly evolve into a world leader in the areas of ground systems, communications and C4I. Together with our integration of Tadiran, and based upon the Group's highly qualified and dedicated personnel, strong global presence, growing backlog, continued investment in R&D and solid cash flow, we are confident of our continued success for the future".

The Board of Directors declared a dividend of $0.16 per share for the second quarter of 2007. The dividend's record date is August 28, 2007, and the dividend will be paid on September 10, 2007, net of taxes and levies, at the rate of 16.6%.

http://biz.yahoo.com/prnews/070814/uktu013.html?.v=101
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midastouch017 midastouch017 17 years ago
Elbit Systems wins 3 Asian contracts
The company will upgrade tank and artillery systems in three countries.
Adi Ben-Israel 7 Aug 07 10:50
Defense contractor Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has won three contracts worth an aggregate $163 million for the supply of tank and artillery systems upgrades for customers in three Asian countries. The contracts will be carried out through 2009.
Elbit will upgrade fire control, command and control systems for tanks and artillery systems.

Elbit Systems president and CEO Joseph Ackerman said, "Recent land systems orders announced by the company, including the sale of turrets to Romania and Slovenia, position Elbit Systems as one of the leading companies in the field of land systems. I believe the new orders will serve as a springboard for additional orders from these customers and other customers worldwide".

Published by Globes [online], Israel business news - www.globes.co.il - on August 7, 2007

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EZ2 EZ2 17 years ago
Thanks !!!
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midastouch017 midastouch017 17 years ago
Howdy EZ,

This company trades in Tel-Aviv as well as
in the Naz. Most of the volume is in Tel-Aviv,
though.

I do not follow the stock, but from what i know,
they win bids with meagre margins, if at all.

Best

Dubi
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EZ2 EZ2 17 years ago
OT: HI stranger !!!

Hey, got a question for you.....do you follow MAGS at all ?

Any ideas on WHAT has held them back ?

TIA/EZ
=======================================

MAGAL SEC SYS LTD (NasdaqGM:MAGS)

Last Trade: 9.10
Trade Time: Jul 30
Change: 0.00 (0.00%)
Prev Close: 9.10
Open: N/A
Bid: 8.45 x 100
Ask: 10.45 x 1000
1y Target Est: N/A

Day's Range: N/A - N/A
52wk Range: 8.51 - 12.00
Volume: 0
Avg Vol (3m): 16,196.9
Market Cap: 94.59M
P/E (ttm): 97.85
EPS (ttm): 0.09
Div & Yield: N/A (N/A)


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midastouch017 midastouch017 17 years ago
“Defense News”: Elbit Systems in Indian upgrade
Elbit Systems is seen providing EW systems and other avionics through a joint venture with Hindustan Aeronautics.
Erez Wollberg 30 Jul 07 15:10
“Defense News” reports that Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) will probably provide avionics in the upgrade of 51 Indian Air Force Mirage 2000-H fighter jets as a subcontractor for Hindustan Aeronautics Ltd. (HAL).
“Defense News” says, “Although the contract has not yet been signed, officials with HAL, prime contractor for the $1 billion upgrade program, said Elbit has been selected to supply electronic warfare systems and other avionics.”

“Defense News” adds that parts of the integration and software tasks will be performed in Bangalore by Halbit Avionics, an equity partnership struck early this year between HAL and Elbit Systems. HAL holds half of Halbit, Elbit Systems holds 26% and Merlinhawk Ltd., a Bangalore consulting firm, 24%.

“Defense News” quotes an HAL executive as saying that France’s Dassault will be another subcontractor, and has made a commitment with Elbit Systems to supply non-avionics components, including upgrades to the airframe, non-avionics systems and the engine. Elbit Systems has been engaged in the upgrade of several types of MiG aircraft and has integrated R-73 beyond-visual-range (BVR) missiles in the Mirage 2000-H.

“Defense News” quotes an Indian Ministry of Defence official as saying that the upgrade program will be completed in five years and will include building a prototype aircraft in India in collaboration with the Indian Air Force, HAL and Dassault. Thales of France and state-owned, Bangalore-based Bharat Electronics also will be involved in the program, which is expected to win final contract approval this year.

Published by Globes [online], Israel business news - www.globes.co.il - on July 30, 2007

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midastouch017 midastouch017 17 years ago
Well done :)

Dubi
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DewDiligence DewDiligence 17 years ago
I sold out today for a 75% gain in 16 months. Good luck to all.
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midastouch017 midastouch017 17 years ago
Four Israeli companies make top 100 largest defense firms

By Ora Coren

Four Israeli companies have been ranked among the world's 100 largest defense firms by Defense News, a leading industry publication. The firms - Israel Aviation Industry (IAI), Elbit, Rafael and the Israel Military Industries (IMI) - were ranked based on revenues from defense-related activity, though some of the companies also have civilian operations.

The IAI dropped from the 31st place last year to 33rd this year, but with annual sales of $1.746 billion (or 62 percent of its total sales of $2.813 billion) remains the largest Israeli company in defense-related sales.

Elbit rose from the 46th spot last year to 39 this year, with defense sales of $1.402 billion, or 92.2 percent of its total sales. Rafael climbed from the 57th place to the 49th, with sales of $1.056 billion - all defense related. IMI also climbed the chart, from 92nd place last year to 84th this year, with defense sales of $481.6 million.

Elbit was also the only Israeli firm to be included in the leading space and aviation weekly, Aviation Week, which ranked the leading public companies in the world based on growth rates over the past five years. Elbit was also awarded a mention on the weekly's cover page, advertising an interview with the company's CEO Joseph Ackerman. Elbit was ranked in 17th in 2006 performance worldwide, and 18th in performance between 2002 and 2006

http://www.haaretz.com/hasen/spages/886363.html
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genisi genisi 17 years ago
ESLT keeps growing in Europe:


Elbit Systems Acquires the UK Company Ferranti Technologies for GBP15 Million (US$31 Million)

Press Release Source: Elbit Systems Ltd Thursday July 26, 5:20 am ET
Elbit Systems Strengthens its Presence in the UK
Joseph Ackerman: The Acquisition is in Line With our Strategy to Provide Better Support to our Customers in UK and Europe

HAIFA, Israel, July 26 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) reported today that it has acquired the entire share capital of the UK company Ferranti Technologies (Group) Limited ("FTL") for GBP15 million (approximately US$31 Million).

FTL is an established supplier of engineering, manufacturing and product support solutions to the Aerospace and Defence markets. FTL designs and manufactures electronic, power and control solutions with emphasis on reliable operation in harsh climatic and electromagnetic environments. FTL's comprehensive customer logistic support services cover: repair, overhaul, modification, integrated logistic support, and post design services.

The acquisition of FTL will enable Elbit Systems to provide enhanced access and support to its customers in the UK and Europe. Together with U-TacS, a UAV Systems company and UEL, the UAV engines' company, the acquisition will strengthen the Group's presence in this important market.

Joseph Ackerman, President of Elbit Systems Ltd., said: "The acquisition of Ferranti Technologies Limited is in line with our strategy of growth through mergers and acquisitions. We have identified in Ferranti a highly capable management team. I believe that FTL and its management will significantly enhance our business base in the UK and enable us to provide better support to our customers, while gaining better market access in the UK and Europe"

Terry Scuoler, Managing Director of FTL said: "Elbit Systems has outstanding technology and a high reputation in the market place and we are excited that the transaction will allow us to further expend our business across the UK and Europe. We are very much looking forward to build on our respective successes to date and continue to serve our customers need.

FTL was sold by The Fifth Causeway Development Fund (advised by ABN AMRO Capital Ltd.) and by FTL's management.

About Ferranti Technologies
Snip
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midastouch017 midastouch017 17 years ago
Elbit Systems wins 2 European contracts
The firm will supply parts for Slovenian Army and Romanian Army armored cars.
Globes’ correspondent 25 Jul 07 11:17
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has won two new contracts in Slovenia and Romania worth $55 million altogether.
Elbit Systems will supply overhead remote controlled weapon stations and unmanned turrets as well as other electronic and electro-optical systems and components for the Slovenian Armored Vehicle Program, for 135 vehicles. Deliveries are scheduled to take place through 2011. The company is cooperating with Patria AMV, owned by the Finnish government and European Aeronautic Defense and Space (EADS) NV, and Slovenan company Rotis d.o.o. Elbit Systems will provide laser detection systems, 30mm Unmanned Turrets and 12.7/40 mm Overhead Remote Controlled Weapon System (ORCWS) onboard Patria AMV 8X8 vehicles. Elbit Systems’ share of the program is $40 million.

In Romania, Elbit System will supply unmanned turrets and electro-optic systems valued at $15 million. Deliveries will made made over the next three years. The prime contractor for the program is selected General Dynamics European Land Combat Systems Group subsidiary Mowag GmbH to supply Piranha III vehicles. Elbit Systems will supply 12.7 mm unmanned turrets, and various electro-optic and electronic subsystems, including the Driver Thermal Viewer (DTV) and other systems. Elbit Systems subsidiary Elmet International srl will carry out most of the work in Romania, together with Romanian company Pro-Optica SA.

Elbit Systems VP and general manger C4I & Land Systems Division Bezhalel (Butzi) Machlis said, “The selection of our systems for the projects attests to our ability to provide a completely integrated configuration for fighting/patrol/surveillance vehicles, including unmanned turrets equipped with missiles fire control and threat detection systems.”

Published by Globes [online], Israel business news - www.globes.co.il - on July 25, 2007

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genisi genisi 17 years ago
Hapoalim bank downgraded today to market perform.

Hapoalim cuts Elbit Systems
"Revenue will grow this year but profitability will be harmed."
Adi Ben Israel 23 Jul 07 13:15
In advance of the company's second quarter financials, Bank Hapoalim has cut its recommendation for Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) to "Market Perform" from "Outperform" and set a target price of $45, 4.5% over the company's current market price. Bank Hapoalim believes that Elbit Systems' revenue has grown in the second quarter, and that its orders backlog is at a record level, but fears that its profitability will remain low.

"We feel that the bottleneck in Elbit Systems' activity is its low profit margins," Bank Hapoalim says. "The company's profitability in 2007 could be harmed as a result of the crisis at Elisra and currency appreciation. Financing costs will increase as a result of the taking of credit to finance the acquisition of Tadiran Communications, as well as the appreciation of the shekel."

Bank Hapoalim believes that while a strong orders backlog will ensure further revenue growth for Elbit Systems this year, the labor dispute at Elisra and the shekel appreciation are likely to harm profitability. "Elbit Systems' revenue for 2007 will total $1.85 billion, with net profit coming in at just $82.4 million (excluding one-time amortizations)," it predicts.

Published by Globes [online], Israel business news - www.globes.co.il - on July 23, 2007

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midastouch017 midastouch017 17 years ago
Elbit Systems unit wins thermal imaging order
Opgal’s EYE R25 IR camera is designed for UAVs, gunsights and security systems.
Adi Ben-Israel and Batya Feldman 17 Jul 07 16:06
Opgal Optronic Industries Ltd., owned by Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Rafael Armament Development Authority Ltd. in equal shares, has won a $50 million three-year contract with a European company to supply its EYE R25 IR thermal imaging systems.
This is the latest in a slew of contracts by Elbit Systems’ subsidiaries in the past month, including an $80 million contract to supply enhanced tactical computers and other command and control systems to an Asian country, a $97 million maintenance, repair and upgrade contract for US Marines Corps Cobra helicopters, and a $85 million contract to supply new generation, advanced, tactical communications equipment and related services to a European country.

Opgal CEO Dadi Lapidoth said, “This is an important milestone for mass production of the EYE R25. We expect to sign more contracts for the system later this year. This imaging system will be used by a large number of different tools, including unmanned aerial vehicles (UAV), gunsights, and security systems.”

Based in Carmiel, Opgal was founded 20 years ago and has 90 employees. It is considered a leading manufacturer of night-vision and thermal imaging equipment. The company is profitable, and is doubling its revenue every year. The company’s EYE R-25 family of thermal cameras use the 25-micron wavelength for both military and a wide range of industrial applications.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2007

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Biowatch Biowatch 17 years ago
Robot air attack squadron bound for Iraq

By CHARLES J. HANLEY, AP Special Correspondent Sun Jul 15, 6:21 PM ET

BALAD AIR BASE, Iraq - The airplane is the size of a jet fighter, powered by a turboprop engine, able to fly at 300 mph and reach 50,000 feet. It's outfitted with infrared, laser and radar targeting, and with a ton and a half of guided bombs and missiles.

The Reaper is loaded, but there's no one on board. Its pilot, as it bombs targets in Iraq, will sit at a video console 7,000 miles away in Nevada.

http://news.yahoo.com/s/ap/20070715/ap_on_re_mi_ea/iraq_air_surge_ii
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midastouch017 midastouch017 17 years ago
Elbit Systems Reports the Impact of the Acquisition of Tadiran Communications Shares on its Second Quarter 2007 Financial Results
Thursday July 12, 6:20 am ET

HAIFA, Israel, July 12 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) announced today that, following the successful completion of its Cash Tender Offer for the balance of the ordinary shares of Tadiran Communications Ltd. on April 26, 2007, it expects to record in the second quarter of 2007 acquisition expenses related to In Process Research & Development write off and Restructuring expenses, estimated at 25 - 30 million dollars.

The Company is in the process of finalizing its purchase price allocation and the related expenses, charges and the on-going amortization of the amounts allocated to tangible and intangible assets acquired in accordance. The overall impact on the financial results for the second quarter will be included in its report, which is planned to be released in August 2007.

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computes, intelligence surveillance and reconnaissance ("C4ISR"), advanced electro-optics and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.

http://biz.yahoo.com/prnews/070712/ukth031.html?.v=9
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DewDiligence DewDiligence 17 years ago
Use of UAVs Surges Over Iraq

[See the sidebar at the end of article for a description of the kinds of UAVs in use. ESLT is not mentioned, so I presume that its UAVs are not employed in Iraq. Much of this article is about the silly in-fighting between the branches of the USDoD.]

http://news.yahoo.com/s/ap/20070705/ap_on_go_ca_st_pe/unmanned_warfare

>>
By LOLITA C. BALDOR,
Jul 5, 2007

The use of unmanned aircraft in Iraq has surged by nearly a third since the buildup of U.S. forces began this year, and drones are now racking up more than 14,000 hours a month in the battlefield skies.

The increase in unmanned aircraft — from high-altitude Global Hawks to short-range reconnaissance Ravens that soldiers fling into the air — has fueled a struggle among the military services over who will control their use and the more than $12 billion that will be spent on the programs over the next five years.

The Air Force wants to take over development and purchasing of unmanned aerial vehicles (UAVs), arguing that it would save money and improve technology and communications.

It also wants more centralized command of the drones, saying better coordination could eliminate airspace conflicts that can endanger U.S. troops.

The other military services see a power grab, and they're fighting it.

A little more than a year ago, about 700 unmanned aircraft were operating in Iraq. By last December, according to Army data, that number had grown to about 950, and it's expected to soon hit 1,250.

At least 500 are the smaller Ravens that are used by the Army. The rest include Hunters and Shadows — the Army's medium-altitude aircraft that can carry weapons — as well as the Air Force Predators, which are also armed. Larger Global Hawks are used for high-tech surveillance.

The boost has been caused in part by the military buildup ordered by President Bush to help secure Baghdad and the Anbar province. U.S. forces in Iraq have grown by nearly 30,000, to a total of 157,000.

The Air Force argument for more central control over how and where the larger, medium-to-high-altitude drones are used would affect aircraft flown generally above 3,500 feet.

The Army is opposing the plan. Army officials say unit commanders need to be able to quickly deploy drones, and any additional bureaucracy could cause risky delays.

To illustrate, Brig. Gen. Stephen Mundt, the Army's aviation director, turns to a dark, middle-of-the night video taken in May by an Army drone over northern Iraq.

Two armed men can be seen apparently planting roadside bombs. As the unmanned aircraft tracks them, U.S. commanders dispatch an attack helicopter team. Just 16 minutes after the drone first observed the activity, the helicopter's 30 millimeter canon fires, taking out the insurgents.

"This is all going on in real time. You can't plan this in advance. And this is not the only event going on, we've got hundreds of these going on all day," said Mundt.

If the Air Force plan is adopted, he said, it could delay access to drones and compromise the unit's response.

Not so, says the Air Force, arguing that lack of central control can endanger U.S. troops, too.

Drones would still be available for commanders who need them, but it's important that priorities be set by a joint air command, said Air Force Brig. Gen. Jan-Marc Jouas, vice commander of the Air Intelligence Agency.

According to a November study, he said, there have been many cases where U.S. forces could not respond immediately to mortar attacks because a drone had been launched in the area, triggering air space restrictions. He did not provide additional details on the incidents.

"I think there has been some confusion as to what it is the Air Force means," said Jouas. It's about giving the soldiers, sailors, airmen and Marines "a better product to support them in the fight. It's not about taking UAVs away from the soldier or the Marine."

Air Force officials say their proposal will save millions of dollars, improve the systems and ensure the aircraft have compatible communications systems.

The funding change is critical, Jouas added, as a way to save money.

As an example, he said that instead of awarding a new contract for the Army's Sky Warrior program, the Pentagon could have worked with the existing, and similar, Predator program. Doing that, he said, could have saved between $400 million and $600 million.

The Army's Mundt, however, said his service had a competitive bidding process and the Sky Warrior was selected.

Pentagon leaders, including Deputy Defense Secretary Gordon England, are pressing the services to hammer out a compromise. And Navy Adm. Edmund P. Giambastiani Jr., vice chairman of the Joint Chiefs of Staff, met last week with other top brass to review the Air Force plan, including England's June directive that the services work together more on the Army's new Sky Warrior program and the Air Force's long-standing Predator program.

But finding common ground has proven difficult.

The Pentagon's 2008 budget calls for spending nearly $900 million for five pricey Global Hawks, almost $70 million on 300 Ravens, and close to $700 million on research, development and procurement of two dozen Predators, four Reapers and a dozen Sky Warriors.

The Air Force's central control plan would involve the larger drones and not affect the small, shoulder-launched Ravens, which soldiers can send into the air for shorter range, lower altitude surveillance and reconnaissance.

All four military services are pursuing plans to buy more unmanned aircraft. The Army and Marine Corps are looking at buying the new Sky Warrior, which is touted as being more lethal than the Predator. It could carry four Hellfire missiles, while the existing Predators generally carry two. The two aircraft are built by the same company, General Atomics Aeronautical Systems, based in California.

The Navy is looking into a new helicopter-like drone that can take off and land vertically on ships.

The Air Force, meanwhile, is investing $13 billion to buy 241 drones, including Predators, Global Hawks and Reapers, over the next five years.

Gen. Michael Moseley, the Air Force chief of staff, said one goal is to set up 21 orbits of continuous unmanned aircraft coverage in the Central Command region, which includes Iraq. Currently, he said there are about 10.

[Sidebar]

Unmanned Aircraft of the U.S. Military

The U.S. military is increasing its use of drones in Iraq. Some of the systems include:

• Global Hawk: The military's prime eye-in-the-sky provides high-altitude, high-resolution intelligence, surveillance and reconnaissance in near real-time. Once programmed, it can taxi, take off, fly, capture images and return on its own, while ground-based operators monitor its progress or, if needed, change its course. It has a wingspan of about 116 feet, and can fly at altitudes of up to 65,000 feet. The prime contractor is Northrop Grumman's Ryan Aeronautical Center in California, and the proposed 2008 federal budget would spend $876.3 million on research, development and the purchase of five aircraft.

• Predator: Currently, the military's main hunter-killer system, the Predator is equipped with cameras, sensors and radar that can capture video and still images. It also has a targeting system and can carry two laser-guided Hellfire missiles. It is about 27 feet long, weighs more than 1,100 pounds, and can fly at altitudes up to 25,000 feet. The prime contractor is General Atomics Aeronautical Systems Inc. [#msg-18794055], and the proposed 2008 budget includes about $375 million for research, development and the purchase of 24 aircraft.

• Shadow: It's used by Army brigades on the battlefield for reconnaissance. The Shadow is smaller than the Global Hawk and Predator, with a wingspan of 12.3 feet, and it generally flies at altitudes between 6,000 and 10,000 feet. The contractor is AAI Corp., based in Maryland, and the proposed 2008 budget includes about $48 million for development.

• Raven: Weighing a little more than four pounds, the Raven has become a critical reconnaissance tool for smaller Army units, such as companies and battalions. It has a 5-foot wingspan, is a bit more than 3 feet long. Soldiers can fling them into the air by hand, though it also has an electric motor. It is often used to locate roadside bombs or let soldiers know what lies around the next corner or over the hill. The contractor is California-based AeroVironment Inc.[#msg-16439285], and the proposed 2008 budget includes nearly $23 million for research, development and the purchase of 300 aircraft.
<<
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midastouch017 midastouch017 17 years ago
No stopping ESLT,

Elbit Systems Awarded $80 Million Contract by an Asian Country to Provide Tactical Computers and Other Command & Control Systems
Tuesday July 3, 6:35 am ET

HAIFA, Israel, July 3 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) announced today it was awarded a contract valued at approximately $80 million to supply tactical computers and other command & control systems to an Asian country.

The contract will be performed over the next four years and will include the supply of Enhanced Tactical Computers (ETC), advanced communication controllers and additional command & control packages.

The ETC is one of the major building blocks for Elbit Systems' Command, Control, Communication, Computers and Intelligence (C4I) systems. The ruggedized, high performance PC based computer is widely used by armies worldwide. It is the latest generation of a long line of tactical terminals, fully complying with the operational requirements and the harsh conditions of the modern battlefield. Equipped with all types of communication interfaces and powerful display features, the ETC enables the user in the field to achieve a new level of real-time situation awareness in combat. The tactical communication device embedded in the ETC is used together with the data communication software to enable communication over a vast selection of modern military media, among which are analog and digital radios, field wire-line, wireless LAN and data radios.

Elbit Systems is a world leader for C4I systems and has supplied similar systems to the Israeli Defense Forces and other customers worldwide, including leading NATO members

http://biz.yahoo.com/prnews/070703/uktu026.html?.v=29

Dubi
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genisi genisi 18 years ago
Press Release Source: Elbit Systems of America

Kollsman, an Elbit Systems of America Company, Awarded ID/IQ Contract Worth up to $97 Million from U.S. Navy
Wednesday June 27, 6:15 am ET
Received Initial Delivery Orders Valued at $14 Million

MERRIMACK, New Hampshire, June 27 /PRNewswire-FirstCall/ -- Kollsman, Inc., an Elbit Systems of America company, announced receipt of an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract from the Naval Inventory Control Point-Philadelphia (NAVICP)/Naval Supply Systems Command (NAVSUP) for test, teardown, analysis and repair/modification of various Night Targeting System (NTS) Weapon Repairable Assemblies (WRAs) and System Repairable Assemblies (SRAs) in support of the AH-1W Marine Corps Helicopter. The total ID/IQ contract value may run as high as $97 million over a five-year period. As part of this award Kollsman has received initial delivery orders valued at $14 million. Work will be mainly performed in Merrimack, New Hampshire and is expected to be completed in 2012.

ADVERTISEMENT
"We are very pleased to be selected by the NAVICP/NAVSUP. This contract continues Kollsman's important work supporting the Marine Corps helicopter mission readiness and demonstrates excellent relations with this depot legacy program," stated Randy Moore, Kollsman's Executive Vice President and General Manager.
snip
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genisi genisi 18 years ago
Elbit Systems Will Supply Two NATO Members Countries With Aviator's Night Vision Imaging System/Head-Up Displays
Monday June 18, 4:47 am ET
Contracts Valued at Approximately $14 Million

http://biz.yahoo.com/prnews/070618/ukm013.html?.v=101&printer=1

HAIFA, Israel, June 18 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) announced that it has been awarded two contracts, in a total amount of approximately $14 million to supply Aviator's Night Vision Imaging System/Head-Up Displays (ANVIS/HUD(TM)) for helicopters of two NATO member countries.

The ANVIS/HUD(TM) system employs cutting edge technologies to provide the most advanced system of its kind, offering a 24/7 significant increase in situational awareness and safety by allowing the pilot to fly "head out of the cockpit" during night operations and projecting critical flight information into the night vision goggles' view. This system has been in operational use by U.S. Army, U.S. Navy / U.S. Marine Corps and U.S. Air Force rotary wing pilots since the mid-1990's and is installed on numerous utility and special operations helicopter fleet platforms, including the UH-60, CH-53 CH-47, CH-46, AH-1, UH-1, V-22, Super Puma, Cougar and others. The Elbit Systems Group has equipped more than 5,000 helicopters, for more than 20 countries, with ANVIS/HUD(TM) systems.

Yoram Shmuely, Corporate Vice President and General Manager of Elbit Systems' Airborne and Helmet Systems Division said: "The selection of our systems for this project attests to Elbit Systems' leadership in the field of helmet and heads-Up display systems. The ANVIS/HUD(TM) system was developed to fully comply with NATO and U.S. military requirements allowing NATO pilots to safely and effectively execute their various missions in both day and night conditions."

Up to date, Elbit Systems delivered over 5,000 ANVIS/HUD(TM) systems to over 20 countries worldwide.

The JSF (F-35), considered the most advanced tactical fighter jet of its kind, is equipped with Elbit Systems' US subsidiary - VSI's helmet system. In recent weeks, the aircraft's manufacturers, Lockheed Martin, conducted a number of successful test flights using this helmet system.

About Elbit Systems
snip
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midastouch017 midastouch017 18 years ago
>>And finally, companies like Elbit Systems actually do better in this environment just because of their focus on the military."
* Investors in defense contractor Elbit Systems have earned 10 times their initial investment. >>

#msg-20371400

Dubi
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midastouch017 midastouch017 18 years ago
Israel launches ‘Ofek 7’ satellite
The Ofek 7 is a reconnaissance satellite with state-of-the-art imaging technologies.
Globes’ correspondent 11 Jun 07 11:01
Israel successfully launched the ‘Ofek 7’ satellite using the Shavit launcher at 2:40 am today. The satellite is now in position in orbit, and will undergo a series of tests to verify that all systems are functioning and performing according to specs.
The Ofek 7 is a reconnaissance satellite with state-of-the-art imaging technologies. Israel Aerospace Industries Ltd. (IAI) designed and built the satellite and launcher together with Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) subsidiaries El-Op Electro-optical Systems Ltd. and Elisra Group, Israel Military Industries Ltd. (IMI), Rafael Armament Development Authority Ltd., Tadiran Spectralink Ltd., and other high-tech companies. The Ministry of Defense ordered the satellite, which was launched from the Israel Air Force experimental launch site.

Published by Globes [online], Israel business news - www.globes.co.il - on June 11, 2007

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midastouch017 midastouch017 18 years ago
Israel in fourth place among defense exporters
Export Institute chairman David Arzi: Israeli companies will sign contracts worth $600-800 million during the Paris Air Show next week.
Hadas Manor 10 Jun 07 17:13
Israel is the world’s fourth largest defense exporter, after the US, Russia, and France, and ahead of the UK. Israeli defense exports total $3.4 billion.
SIBAT - Foreign Defense Assistance and Defense Export Organization director-general Gen. (Ret.) Yosi Ben-Hanan says that Israel’s defense exports to the US grew from $270 million in 1999 to $1.2 billion in 2006. He added that US supervision of Israeli defense exports has cost Israel $300 million over the past three years. Suspect Detection Systems Ltd. (SDS) chairman Giora Eiland, the former chairman of the National Security Council, added that the loss was smaller than Israel had thought.

Israeli exports of homeland security and safety equipment, excluding information security, will grow 20% this year, compared with 15% growth in 2006, to $1.2 billion. 30 new companies entered this field over the past year, to a total of 350 exporters. IT security exports totaled $2 billion.

Israel Export and International Cooperation Institute chairman David Arzi says that Israeli companies will sign contracts worth $600-800 million during the Paris Air Show next week. The global defense and aerospace market will grow by $1.3 billion this year (3.1%, compared with 0.9% growth in 2006), and will grow by $1.4 billion in 2009.

Israeli participants at the Paris Air Show will include Aeronautics Defense Systems Ltd., Bental Industries Ltd., Ashot Ashkelon Industries Ltd. (TASE: ASHO), Bet Shemesh Engines Ltd. (TASE: BSEN), Controp Precision Technologies Ltd., Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), Israel Aerospace Industries Ltd. (IAI), Orbit Alchut Technologies Ltd. (TASE:ORBI), Plasan Sasa Ltd., Rafael Armament Development Authority Ltd., Rada Electronic Industries Ltd. (Nasdaq: RADID), SDS, and Tadiran Communications Ltd.

Published by Globes [online], Israel business news - www.globes.co.il - on June 10, 2007


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genisi genisi 18 years ago
U-Tacs Awarded $ 110 Million Order By Thales UK
To Provide ISTAR Capability For UK Armed Forces
Haifa, Israel, June 7, 2007- Elbit Systems Ltd. (NASDAQ:ESLT) announced that its UK company with Thales UK - UAV Tactical Systems Ltd. (U-TacS) has been awarded a contract worth approximately $110 million by Thales UK to provide an urgent intelligence, Surveillance, Target Acquisition and reconnaissance (ISTAR) support capability for the UK Armed Forces. The program, will commence immediately and will take place over the next
few years.
The contract includes the provision of Hermes® 450 UAV systems, as well as training of the UK MoD staff in use and maintenance of the system, and the provision of contractor logistic support (CLS) and program management services. This work will be managed from the U -TacS facility in Leicester, UK, which currently employs approximately 100 personnel. U -TacS also provides the core UAV systems for the Thales UK Watchkeeper UAV system.
The President and CEO of Elbit Systems, Joseph Ackerman said: "Once again, we are proud to be a part of a winning team together with Thales UK in a project based on the High End tactical Hermes® 450 UAV, globally recognized as a brand name for UAV
customers worldwide."
U-TacS is held 51% by Elbit Systems with the balance being owned by Thales UK.
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genisi genisi 18 years ago
Elbit Systems unit get $18m Marine Corps order
Talla-Tech will provide the Marines with rugged hand-held computers for situational awareness.
Amir Keidan 5 Jun 07 12:06
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) unit Tallahassee Technologies Inc. (Talla-Tech) has received $18.5 million in orders from the US Marine Corps for the company’s rugged hand-held computers, which provide situational awareness for dismounted Marines.

Talla-Tech is a wholly-owned US subsidiary of Elbit Systems’ subsidiary Tadiran Communications Ltd.. Elbit Systems completed an offer to purchase for Tadiran Communications in April and delisted it from the TASE.

The Marine Corps chose the Talla-Tech Rugged Personal Digital Assistant (RPDA-57), which is based on both the Microsoft Windows CE and Microsoft Windows Mobile operating system. Elbit Systems noted that Talla-Tech and Tadiran Communications have supplied rugged computers to the Marine Corps since 1998 in both mounted and dismounted configurations.
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midastouch017 midastouch017 18 years ago
Elbit Systems unit wins night vision contracts
El-Op’s CORAL hand-held thermal imaging systems have been sold to the IDF, Canadian Army, and other customers.
Globes’ correspondent 29 May 07 12:45
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) unit Electro-Optics El-Op Ltd. has won several contracts worth an aggregate $50 million to supply hand-held night vision thermal imaging systems to the Canadian Army, IDF, and other customers worldwide.
El-Op general manager Haim Rousso said, "El-Op's advanced hand-held thermal imaging systems are part of the CORAL family of products. They combine advanced capabilities and high performance with compactness and low energy consumption, providing a considerable advantage to infantry forces." The hand-held night vision thermal imaging system weighs less than 2.5 kilograms, which infantrymen carry on a neck-strap.

Published by Globes [online], Israel business news - www.globes.co.il - on May 29, 2007

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DewDiligence DewDiligence 18 years ago
In Tense Times, Israeli Arms Biz Booms:
#msg-19804853.
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genisi genisi 18 years ago
CIBC: Elbit Systems will benefit from Tadiran synergy

http://www.globes.co.il/serveen/globes/docview.asp?did=1000213659&fid=942

CIBC has upped its target price for Elbit to $52
Erez Wollberg 20 May 07 16:58
CIBC World Markets has published an update on Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) in which rated it "Sector Performer" with a target price of $52, 44% higher than its previous target price.

"Even with the Elisra integration taking longer than expected, Elbit Systems continues to deliver strong results, growing revenue 20% organically year-on-year and once again delivering solid earnings per share," says CIBC. "Further, with the Tadiran Communications acquisition complete, opportunities for top-line synergy and 2008 upside appear to be expanding."

CIBC adds that Elbit Systems first quarter revenue of $404 million beat the market estimate which predicted $381 million in revenue, and its own estimate of $397 million in revenue. The company's earning per share of $0.45 was in line with CIBC's consensus but $0.02 higher than the market consensus.

Commenting on Elbit Systems' recent acquisition of Tadiran Communications, CIBC says, "We are adjusting estimates to reflect the Tadiran acquisition and positive momentum in multiple geographies and product lines. Our full year expected revenue moves to $1.83 billion from $1.64 billion and earnings per share to $2.22 from $2.00."

As for its increase in target price for Elbit Systems to $52, CIBC says, " Our target price is achieved by applying 18x to our full year 2008 expected earnings per share of $2.88. The target multiple is in the middle of peers' 15x-20x range, and is supported by Elbit Systems' growth, solid cash flows, and upside potential."
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genisi genisi 18 years ago
I consider it as a kind of noworries stock with relatively low risk. Bought it for my dad's portfolio in TASE on March. Did well since.
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DewDiligence DewDiligence 18 years ago
Ho hum… this company is a moneymaking machine. My investment has almost doubled in a little over a year and I barely have to do any DD.
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genisi genisi 18 years ago
Press Release Source: Elbit Systems Ltd
http://biz.yahoo.com/prnews/070515/uktu011.html?.v=101&printer=1
Elbit Systems Reports First Quarter 2007 Results
Tuesday May 15, 3:40 am ET
Continued Record Revenues and Backlog of Orders
Revenues Increased by 20.7% Year Over Year to $403.6 Million
Net Profit Increased by 32.0% Year Over Year to $19.1 Million

HAIFA, Israel, May 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT - News) the international defense company, today reported its consolidated results for the first quarter ended March 31, 2007.

The Company's backlog of orders as of March 31, 2007 totaled $3,796 million, as compared with $3,786 million as of December 31, 2006. The backlog amount reflects a reduction of approximately $70 million due to a cessation settlement of the Bulgarian helicopter program. Approximately 71% of the backlog relates to orders outside of Israel. Approximately 70% of the Company's backlog as of March 31, 2007 is scheduled to be performed during the upcoming three quarters of 2007 and during 2008.

Consolidated revenues for the first quarter of 2007 increased by 20.7% to $403.6 million, from $334.4 million in the first quarter of 2006.

Gross profit for the first quarter of 2007 increased by 18.3% to $103.5 million (25.7% of revenues), as compared with gross profit of $87.5 million (26.2% of revenues) in the first quarter of 2006. The gross profit margin in the first quarter of 2007 was affected mainly by the impact of the weakening U.S. Dollar against the New Israeli Shekel ("NIS"), which increased the effective labor costs in Israel.

Consolidated net income for the first quarter of 2007 increased by 32.0% to $19.1 million (4.7% of revenues), as compared with $14.5 million (4.3% of revenues) in the first quarter of 2006. Diluted earnings per share for the first quarter of 2007 were $0.45, as compared with $0.35 for the first quarter of 2006.

Operating Cash flow during the first quarter of 2007 reached a record $86.8 million.

The President and CEO of Elbit Systems, Joseph Ackerman, commented: "The continued revenue and profit growth trend we reported is especially impressive due to the organic growth we have recorded in the first quarter of 2007. This growth of approximately 20% is the result of our long-term strategy of expanding our operations to additional target markets and a continued investment in the R&D of advanced technologies and cutting edge products. This strategy enables us to win prestigious and important contracts and to further enhance our network of customers and business partners. It is a long-term strategy that will continue guiding us in the future."

Mr. Ackerman added "After the end of this report period we completed the acquisition of Tadiran Communications' shares and are in the process of realizing the new synergies within the Group's companies. We have also prepared an action plan for Elisra, however, it requires cooperation from the employees and their representatives."

The Board of Directors declared a dividend of $0.16 per share for the first quarter of 2007. The dividend's record date is May 29, 2007, and the dividend will be paid on June 11, 2007, net of taxes and levies, at the rate of 18.15%.

Conference Call

The Company will also be hosting a conference call today, Tuesday, May 15, 2007 at 10:00 am EDT. On the call, management will review and discuss its first quarter 2007 results and will be available to answer questions.

To participate, please call one of the following teleconferencing numbers. 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.

US Dial-in Numbers: 1-888-407-2553

UK Dial-in Number: 0-800-917-9141

ISRAEL Dial-in Number: 03-918-0609

INTERNATIONAL Dial-in Number: +972-3-918-0609

at:

10:00 am Eastern Time

7:00 am Pacific Time

3:00 pm UK Time

5:00 pm 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 number is either: 1-877-456-0009 (US) 0-800-917-4613 (UK) or +972-3-925-5942 (Israel and International).

About Elbit Systems Ltd.:

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.

STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

(FINANCIAL TABLES TO FOLLOW)

ELBIT SYSTEMS LTD.

CONSOLIDATED BALANCE SHEETS

(In thousand of US Dollars)



March 31 December 31
2007 2006
Unaudited Audited

Assets

Current Assets:
Cash and short term deposits 155,822 85,400
Trade receivable and others 427,289 465,428
Inventories, net of advances 395,015 371,962
Total current assets 978,126 922,790

Affiliated Companies & other Investments 231,941 235,723
Long-term receivables & others 191,443 189,236
Fixed Assets, net 294,090 294,628
Other assets, net 126,656 128,995
1,822,256 1,771,372

Liabilities and Shareholder's Equity

Current liabilities 827,435 810,885
Long-term liabilities 485,118 460,032
Minority Interest 8,380 6,871
Shareholder's equity 501.323 493,584
1,822,256 1,771,372

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF INCOME

(In thousand of US Dollars, except for per share amounts)

Three Months Ended Year Ended

March 31 December 31
2007 2006 2006
Unaudited Audited

Revenues 403,600 334,370 1,523,243
Cost of revenues 300,062 246,830 1,149,768
Gross Profit 103,538 87,540 373,475

Research and development, net 24,093 21,438 92,232
Marketing and selling 32,371 26,248 111,880
General and administrative 20,318 19,007 77,505
Total operating expenses 76,782 66,693 281,617

Operating income 26,756 20,847 91,858

Financial expenses, net (2,928) (4,241) (21,456)
Other income (expenses), net 113 908 1,814
Income before income taxes 23,941 17,514 72,216
Provisions for income taxes 6,733 4,604 20,694
17,208 12,910 51,522

Equity in net earnings (losses) of
affiliated companies and partnership
3,400 2,267 14,743
Minority rights (1,509) (709) 5,977
Net income 19,099 14,468 72,242

Earnings per share
Basic net earnings per share 0.45 0.35 1.75

Diluted net earnings per share 0.45 0.35 1.72






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midastouch017 midastouch017 18 years ago
IDF to buy scores of tactical UAVs for infantry
IAI, Elbit Systems, Rafael and Aeronautics Defense Systems will participate in the tender, worth tens of millions of shekels.
Amnon Barzilai 1 May 07 16:42
The IDF will publish a tender next week for the procurement of scores of tactical unmanned aerial vehicles (UAV) for infantry battalions. The tender will also include command and control stations and advanced imaging systems. The tender will be worth tens of millions of shekels.
Israel Aerospace Industries Ltd. (IAI), Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), Rafael Armament Development Authority Ltd., Aeronautics Defense Systems Ltd. and other companies will participate in the tender.

A senior IDF source told “Globes” that this was the first procurement of its kind. The UAVs are intended to improve the operational effectiveness of the infantry and defense of the country’s borders. Sources inform ''Globes'' that the IDF is formulating a follow-on plan for the procurement of larger UAVs for infantry brigades. The IDF will also procure miniature unmanned flyers that can transmit images to ground units.

The IDF began examining tactical UAVs for intelligence and operational missions four years ago. The IDF has bought several Skylark UAVs, made by Elbit Systems, which were used in the Second Lebanon War, and are used by units operating in the Gaza Strip. One Skylark was captured by Hamas.

The source said, “We flown thousands of hours on hundreds of operational sorties, and learned our operational needs. We’ve learned what this technology makes possible. The goal is ensure complete independence by unit commanders at fairly low cost.”

Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2007

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midastouch017 midastouch017 18 years ago
UBS upgrades Elbit Systems to “Buy”
UBS raised its target price for the share to $51 from $36
Shira Horesh 1 May 07 13:23
UBS has upgraded its recommendation for Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) to “Buy 2” from “Neutral” and raised its target price from $36 to $51, 25% above its current price on Nasdaq.
UBS notes, “Last week, Elbit successfully tendered for 53% of the Tadiran Communications Ltd. (TASE: TDCM) shares that it did not own. While shares are up significantly since the tender offer began, we believe that with synergies and cost savings from a consolidated sector that there is still room for substantial appreciation in the stock.”

UBS says, “Tadiran Communications’ product portfolio is complementary to Elbit’s, in our view, and we see cost synergies over time… Tadiran also has $310 million in cash on hand, so we assume essentially neutral financing from an operating perspective given the $380 million spent on the shares not already owned. Elbit has now consolidated the non-government defense sector in Israel. We believe that R&D and general and administrative savings will start to appear in the second half of 2007 and 2008 as Elbit integrates the businesses under its control.”

UBS also raised its forecasts for Elbit Systems to $2.38 earnings per share in 2007 on $1.9 billion revenue, and $3 earnings per share on $2.01 billion revenue in 2008.

Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2007

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midastouch017 midastouch017 18 years ago
Elbit Systems completes Tadiran Com buy
The company will turn Tadiran Communications into a wholly-owned subsidiary.
Globes’ correspondent 29 Apr 07 10:29
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has successfully completed its offer to buy Tadiran Communications Ltd. (TASE: TDCM).
Elbit Systems said that it bought 6.7 million Tadiran Communications shares, 51.16% of the outstanding shares, when the offer expired at 2:00 pm on April 26. The company paid NIS 210 per share for a total of $350 million.

With the success of the offer to purchase, Elbit Systems will buy the remaining shares of Tadiran Communications from shareholders who did not accept the offer to buy, and will turn Tadiran Communications into a private, wholly-owned subsidiary of the company.

Elbit Systems president and CEO Joseph Ackerman said, "The acquisition of Tadiran Communication is in line with our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value."

Published by Globes [online], Israel business news - www.globes.co.il - on April 29, 2007

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DewDiligence DewDiligence 18 years ago
Elbit Systems Acquires Through a Tender Offer the Balance of Tadiran Communications' Shares

http://biz.yahoo.com/prnews/070426/ukth033.html?.v=4

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Thursday April 26, 1:18 pm ET

HAIFA, Israel, April 26 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT ; the "Company") announced today the successful completion of its previously announced Cash Tender Offer for balance of the ordinary shares of Tadiran Communications Ltd. (TASE: TDCM) ("Tadiran") (the "Offer").

The Offer expired at 2:00 p.m., Israel time, on April 26, 2007, with 6,690,801 Tadiran shares tendered and accepted for purchase under the terms of the Offer for a price of 210 New Israeli Shekels per share. The total amount paid for the tendered shares was approximately $350 million, based on current exchange rates. These shares, which represent approximately 51.16% of the total outstanding ordinary shares of Tadiran (approximately 52.85% of the voting rights), satisfy the legally required majority under the terms of the Offer.

As a result, and in accordance with the provisions of Israeli law relating to tender offers, the Company will acquire under the terms of the Offer, the remaining shares of Tadiran from those Tadiran shareholders who did not provide an acceptance notice relating to the Offer. Accordingly, Tadiran will become a private, wholly-owned subsidiary of the Company.

Joseph Ackerman, President and CEO of Elbit Systems Ltd., commented: "The acquisition of Tadiran Communication is in line with our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value." Mr. Ackerman further noted that "Tadiran Communications is an excellent company with advanced technology products that have proven operational success with numerous defense forces worldwide, including the Israel Defense Forces. Tadiran's areas of business complement those of Elbit Systems and represent a significant force multiplier, further leveraging the Elbit Systems Group's depth and versatility and enabling us to offer our customers even more comprehensive turn-key solutions based on the Group's collective strengths."
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midastouch017 midastouch017 18 years ago
Chief Scientist grants NIS 46m for 21 R&D projects
Elbit Systems, Orbotech, Applied Materials and Insightec won grants
Hadas Manor 19 Apr 07 15:00
The Office of the Chief Scientist research committee has approved NIS 45.9 million in R&D grants for Applied Materials Israel Ltd., Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), InSightec Image Guided Treatment Ltd. and Orbotech Ltd. (Nasdaq: ORBK). NIS 110 million will be invested in the companies’ projects.
Elbit Systems, including its El-Op subsidiary, received the most grants, totaling NIS 16.9 million. Because of budgetary restraints, the research committee approved only half of the investment amounts the companies are planning for these projects. State R&D grants amount to 30-40% of a research project, and are repaid with interest as royalties in the event of success.

The Chief Scientist approved 13 electro-optical projects, 12 of them for Elbit Systems; four projects for Orbotech; three projects for Applied Materials Israel; and one project for Insightec.

Published by Globes [online], Israel business news - www.globes.co.il - on April 19, 2007

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DewDiligence DewDiligence 18 years ago
>After the meeting, capital market sources speculated that Elbit Systems would have to seriously sweeten its offer, from NIS 186 per Tadiran share to NIS 230<

The new price is NIS 210, according to ESLT’s PR.
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midastouch017 midastouch017 18 years ago
Struggle over Tadiran: Investors vs Elbit
15.4.07 | 11:02 By Ora Coren
Last Thursday, the Tadiran Communications (TASE: TDCM) board of directors convened for a what was supposed to be a routine meeting on technical matters. The result was a bust-up that might cost the company's controlling shareholder - Elbit Systems (Nasdaq: ESLT) dearly.

The issue at stake was whether Elbit Systems should sweeten its tender offer, released a month ago, to buy all outstanding shares in Tadiran.

Elbit Systems, controlled by Mickey Federmann and managed by Yossi Ackerman, wants to delist Tadiran in order to facilitate the merger of the two companies, and to lower costs. Also, Tadiran is sitting on $310 million cash, which would do nicely (from Elbit's view) to finance the stock repurchase.

The law requires the board of the acquired company to state whether the directors really think the tender offer is in the company's best interests, and that of its shareholders. Then the directors shape their recommendation.

In other words, the directors have to decide whether to accept the offer and sell all the company's shares to the buyer, or to reject it, possibly in anticipation of a higher price, or to deflect the offer entirely.
The board can decide not to have an opinion, though, which is what the Tadiran board did.

"Given the complexity of what the company does and the period of time set in law, the board cannot solicit an external, comprehensive economic opinion including pricing appraisals by the deadline," the Tadiran board explained.

But the board didn't abandon the issue: it demanded that Elbit Systems reveal two deals Tadiran has brewing, which the Elbit Systems owners knew about when publishing their offer, but about which investors had no information.

The two deals were big ones, amounting to some $200 million, at the very least.

No rubber stamps

The Tadiran external directors spelled it out: they would not be faceless rubber stamps. Evidently they thought Elbit Systems was offering too little.

After the meeting, capital market sources speculated that Elbit Systems would have to seriously sweeten its offer, from NIS 186 per Tadiran share to NIS 230 (24%). Or, it could step away and abandon the whole idea.

Ackerman and two other directors at Tadiran who also work at Elbit Systems did not take part in the meeting.

Elbit Systems bought the controlling interest in Tadiran a year and a half ago. It owns 42.8% of the company's shares. Institutional investors and households own the rest. A full tender offer for all outstanding shares would cost NIS 1.3 billion at the share price of NIS 186. If the price is raised to NIS 230, it will cost Elbit Systems NIS 1.65 billion, or, an extra NIS 350 million for the minority shareholders in Tadiran.

The deadline for the shareholders to accept the tender offer is this weekend.

One project for which Tadiran awaits final approval is a joint deal with Siemens, to make fast trains for China. It is a vast deal that could bring the Israeli company (via subsidiaries Telefunken Racoms) 50-60 million euros, at first, and another 30-40 million euros at a second stage. Telefunken Racoms would be responsible for the fast train's monitoring and control systems.

Then there's a 60-70 million euro deal to supply military communications equipment to a western European country. The customers approval is expected within weeks. Sources at the company are more confident about the Chinese deal than this one.

Tadiran is considered to be one of Israel's most successful military-industry companies. It develops cutting-edge technology and is also sitting on a pile of cash, turning it into a highly attractive target for investors. So is Elbit Systems offering enough?

"Even now its share price is trading at NIS 190," points out a financial market source. "Investors voted with their feet and showed Elbit Systems what they thought of its offer. The market expects Elbit Systems to significantly lift its offer, to NIS 230 per share, or to withdraw from the whole thing."

An Elbit Systems spokesperson firmly denied that the company had even mulled the notion of hiding the two transactions. The spokesmen said they were deals that didn't need to be reported during the regular course of business, and that the board members unanimously decided to reveal them because of the tender offer.

The spokesperson added that Elbit Systems' representatives on the Tadiran board had not taken part in said meeting, which, insofar as they know, was conducted amicably and with full consensus.

http://www.haaretz.com/hasen/pages/ArticleContent.jhtml?itemNo=848561


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DewDiligence DewDiligence 18 years ago
ESLT Raises Tender Price for Tadiran by 13%

http://biz.yahoo.com/prnews/070415/uksu001.html?.v=70

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Elbit Systems Modifies Tender Offer For Balance of Tadiran Communications' Shares

Sunday April 15, 12:45 pm ET

HAIFA, Israel, April 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT ; the "Company") announced today that further to its announcement of March 20, 2007 regarding the issue of cash tender offer to acquire the balance of the ordinary shares of Tadiran Communications Ltd. (TASE: TDCM) ("Tadiran"), it has modified the tender offer.

According to the modification, the Company increase the price for the Tadiran shares from a price of New Israeli Shekel 186 per share, to a final price of New Israeli Shekel 210 (approximately $51.60) per share, and the tender offer period was extended until April 26, 2007.
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DewDiligence DewDiligence 18 years ago
The Pilotless Plane That Looks Like Child’s Play

[A profile of one of the competitors in the UAV arena: a private company called General Atomics.]

http://www.nytimes.com/2007/04/15/business/yourmoney/15atomics.html

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By CHARLES DUHIGG
April 15, 2007

If you’re the type of shopper who spends billions of dollars on lethal military gadgets, and you’re ever invited to visit General Atomics Aeronautical Systems — the small, privately held San Diego company that has quickly become one of the military industry’s most celebrated businesses — take a bit of advice: accept a ride on the corporate jet.

The plane isn’t fancy. The cabin is cramped and the seats a little threadbare. (Want a beverage? Open the cooler, help yourself and quit whining about the heat.) Still, such bare-bones accoutrements haven’t stopped a parade of top military officials and politicians from clamoring for their own seats on General Atomics flights.

If you’re lucky, after the jet lands at the company’s airstrip in the high desert east of Los Angeles, you’ll tour one of the room-sized shipping containers clustered near the runway. Inside is a video-game addict’s idea of a cockpit, with joysticks, gauges and high-tech screens sprouting everywhere and a cushy chair that has improbably become one of the sexiest seats in the military. From that perch you can guide an unmanned airplane, known as the Predator, that is potentially thousands of miles away and can hover over suspected enemies for dozens of hours before raining down missiles.

For years, such planes — known as U.A.V.’s, for unmanned aerial vehicles — were pariahs within the military industry, scorned by commanders who saw them as threats to the status quo. But during the last several years, U.A.V.’s have amassed unusual political firepower. “For a long time, the only thing most generals could agree on was that they didn’t want any unmanned vehicles,” says Senator John W. Warner, the Virginia Republican who is a member of the Senate Armed Services Committee. “Now everyone wants as many as they can get.”

In fact, only a decade ago, crucial Air Force commanders were lobbying to prevent battlefield deployment of U.A.V.’s, according to Congressional staff members. By 2005, however, John P. Jumper, then the Air Force chief of staff, had sufficiently about-faced to tell Congress that “we’re going to tell General Atomics to build every Predator they can possibly build.”

This transformation is, in many ways, a reflection of how the military’s priorities and goals have changed over the last decade. It is also a testament to how much clout General Atomics has amassed in a short period of time.

All of which raises another bit of advice if you’re visiting General Atomics: Don’t be late.

More than one official has learned the hard way that when the pilot of the General Atomics corporate jet says he’s flying back at noon, he means it. And that pilot is likely to be Thomas J. Cassidy Jr., a 34-year Navy veteran, former rear admiral, onetime commander of the station where the “Top Gun” flight school is based and now the president of General Atomics Aeronautical Systems. Mr. Cassidy’s belly may hang a bit over his belt now, but he’s so authentic that when the producers of the film “Top Gun” needed someone for a bit part who oozed power, they cast him.

Which is only fitting, for while General Atomics boasts elaborate technological gizmos and martial splendor, its authority also derives from its political savvy. In the last decade, the company has outgunned some of the nation’s biggest corporate heavyweights in the battle for prized military contracts. Soon, analysts say, Americans may rely on a host of General Atomics military devices, including magnetic cannons that use pulses of electricity to drop ammunition on distant targets, radar systems that can see through even the densest clouds and guns that shoot laser beams.

“Everyone talks about how the world has changed,” Mr. Cassidy says. “We’re building the technology for where it’s going.”

…the Predator and General Atomics reflect the military’s transformation from conflicts built around manned armor to strategies organized around surveillance. U.A.V.’s embody the potential for quick, relatively effortless wars fought by drones controlled from great distances, and thus have become lightning rods for battles over the military’s direction.

General Atomics, the progenitor of General Atomics Aeronautical Systems, started life in 1955 when a major military contractor, General Dynamics, feared that the military hardware market might dry up. It began exploring peacetime uses of atomic energy, but abandoned the effort when cold-war military spending took off. General Atomics eventually passed through the hands of a number of energy companies before landing in the lap of two Denver real estate moguls, Neal and Linden Blue, who bought it in 1986 for about $50 million.

…Soon after the brothers gained control of General Atomics in 1986, they unleashed their passion for advanced aviation by turning the company into a leading pioneer in drone warfare.

Military efforts to develop unmanned planes had existed for decades, but unreliable technology and shifting priorities had killed most of the programs. The Blues, however, were convinced that technological advances in microprocessing and global positioning systems had made it possible to build inexpensive, technologically reliable and ultralight unmanned airplanes that could stay aloft for days. They poured tens of millions of dollars into the project, eventually establishing a separate company, General Atomics Aeronautical Systems, Neal Blue said.

At the time, the Defense Department was less enthusiastic.

“The military can react to new threats and new enemies very quickly, but there is a very high bar to shifting how forces are deployed, because a mistake can be catastrophic to national security,” said Andrew L. Ross, a professor of political science at the University of New Mexico. “Commanders are skeptical about machines that remove soldiers from the field.”

The Predator itself has offered critics some ammunition. One analyst estimates that 20 percent of all Predators sold to the United States military have crashed, because of errors by pilots controlling them from the ground. Another analyst, who has flown the aircraft but asked not to be identified to maintain his relationship with General Atomics, says they offer significantly less maneuverability than manned jets.

Another analyst who has studied the history of U.A.V.’s says the Predator has failed at some crucial tests.

“It has never done everything the military originally wanted it to do,” said Tom P. Ehrhard, a senior fellow at the Center for Strategic and Budgetary Assessments, a nonpartisan research organization. “It still fails on flight reliability, flight worthiness, the camera’s accuracy, the ability to fly through clouds. There are a whole series of operational limitations that normally would prevent a device like this from getting military adoption.”

Officials at General Atomics declined to discuss those and other criticisms in detail. An Air Force spokesman said that the number of Predator crashes had declined, and that the plane’s limitations had not prevented its combat use.

Another obstacle to military adoption of U.A.V.’s, say the Blues and others, is a dynamic even older than the panzerdivizion: resistance to innovations that threaten entrenched power structures.

“There is a very strong tendency to reward commanders for figuring out how to win the last war,” says Neal Blue. “The fiefdoms within the Department of Defense were built upon putting more people into airplanes or into the battlefield. Technologies that didn’t include cockpit pilots or moving soldiers were seen as unattractive.”

For its part, the Air Force disputes that turf wars ever impeded the Predator’s deployment. “It is hard to name any other aircraft that has accomplished so much in so little time, or that has had such an immediate impact on how we conduct combat operations,” it said in a statement. “It was the Air Force that gave birth to the concept that Predator could both find and attack fleeting targets, a concept that has paid huge dividends.”

Nonetheless, the Blues’ early attempts to find military supporters of U.A.V.’s during the 1980s and early ’90s met with little success.

“No fighter pilot is ever going to pick up a girl at a bar by saying he flies a U.A.V.,” says Andrew F. Krepinevich, a former Defense Department analyst who is executive director of the Center for Strategic and Budgetary Assessments. “When defense contractors initially talked about U.A.V.’s, they advertised them as replacements for fighter pilots. Fighter pilots don’t want to be replaced.”

But, ultimately, fighter pilots don’t run the military. Politicians do. And when Bill Clinton entered the White House in 1993, there was already a sense among some elected officials that the military was stuck in cold-war thinking, according to members of Congress at the time.

Those politicians, however, were increasingly butting heads with Pentagon officials. And the military industry, which collected billions of dollars a year selling expensive jets and submarines, was in no rush to tell customers that they needed smaller, cheaper equipment.

So the politicians used stealth tactics. In 1993, John M. Deutch, a deputy defense secretary under President Clinton, invited Neal Blue to the Pentagon under the pretense of discussing fusion reactors. Mr. Blue said in an interview that when he walked in, he discovered an array of high-ranking officials waiting to hear about the Predator. Mr. Deutch asked how long it would take to deliver a flight-ready aircraft. Six months, Mr. Blue promised.

“We were looking for technologies that were sufficiently path-breaking that they offered justification for changing military doctrine,” Mr. Deutch recalled.

Flashy images helped, too. The live video feeds from cameras attached to Predators were transmitted to commanders and politicians back home.

“There was a lot of work to make sure that G.A.’s product made it to the battlefield before the bureaucracy could stop it,” said Representative Duncan L. Hunter of California, the ranking Republican on the House Armed Services Committee. “We knew that once we sent all those pictures to Washington, D.C., the debate would be over.”

After the Predators’ deployment in the Balkans conflict in the 1990s, the military’s support for them began to grow. Although many analysts were already suggesting that Predators could easily carry weapons — cruise missiles use similar technologies — General Atomics avoided even mentioning such possibilities until clients requested them.

“There was an unspoken deal. It was obvious the technology existed to make the Predator into more than just a surveillance platform,” said Daniel Goure, a defense analyst at the Lexington Institute, a military policy research group in northern Virginia. “But fighter pilots shoot the missiles, and fighter pilots have a lot of power within the Air Force. So G.A. made it clear pilots didn’t have to worry about Predators doing something they hadn’t asked for.”

(In the late 1990s, armed Predators were rolling off the assembly line two months after they were requested by Air Force commanders, according to company executives.)

After taking office in 2001, President George W. Bush gave his defense secretary, Donald H. Rumsfeld, a mandate to remake the military into a more technologically advanced organization, and U.A.V.’s became a top priority, say former department officials. The Sept. 11 attacks and the wars in Iraq and Afghanistan heightened the push.

By the time a Predator-launched missile killed a suspected Al Qaeda leader in 2002, even the public was accustomed to hearing about unmanned planes’ successes. Voicing enthusiasm for U.A.V.’s became an easy way for the military brass to show that it had signed on to Mr. Rumsfeld’s program.

“Predators became emblematic of what Rumsfeld wanted,” said Loren B. Thompson, a military analyst at the Lexington Institute. “Suddenly, everyone was saying they were ordering Predators, whether they actually wanted them or not.”

That shift has been profitable for General Atomics Aeronautical Systems. The company, which remains privately held, refuses to disclose its revenue or profits. But it now employs more than 2,400 workers and has sold more than 200 unmanned planes since 1993, according to a spokesman.

In 2005, the Air Force announced that it was ordering enough Predators to equip 15 squadrons over five years, at a price of $5.7 billion. The Department of Homeland Security has bought two Predators for border control, and Italy and Turkey have also bought planes.

A research firm, the Teal Group, predicts that the handful of U.A.V. manufacturers will collect about $55 billion worldwide over the next 10 years. General Atomics is expected to dominate a large portion of that market, said Philip Finnegan, an analyst at Teal.

When Mr. Rumsfeld stepped down last year, one of the mandates that had bolstered the Predator for so long also disappeared.

“Transformation is dead as a political idea,” Mr. Thompson said. “Rumsfeld was discredited by Iraq, and when he left, his priorities left with him.”

That presents a challenge for General Atomics, which is also confronting a flurry of competition. The major military contractors, including Northrop Grumman, Boeing and Lockheed Martin, have all jumped into the U.A.V. game. With billions of dollars at their disposal and deep military relationships, those companies can outspend smaller rivals.

“This is an exploding marketplace, and we intend to claim a larger market share as it grows bigger and bigger,” said Gemma Loochkartt, a spokeswoman for Northrop Grumman. “Being a leader in this sector is important to maintaining leadership within the defense industry.”

So General Atomics is aggressively building on its existing clout. Unlike many other military contractors, which wait for a guaranteed contract to build new products, General Atomics has set aside what some analysts estimate at $50 million to build the next generation of Predators.

“We can move faster because we’re smaller, and we make sure people know that,” says Mr. Blue, who, at 72, still actively guides the company’s strategic direction. General Atomics has upgraded its manufacturing with a diverse range of automated and laser-guided tools that allow it to quickly change design specifications and produce custom-built planes, a flexibility that analysts say is almost unrivaled within the military industry.

Despite a demand for its products that far outpaces supply, the company has kept the Predator relatively cheap — about $19.2 million a plane, according to a study that the Government Accountability Office released last year. “For the military, $19 million is almost an impulse buy,” said John E. Pike, director of GlobalSecurity.org, a defense research firm in Washington.

Yet however much General Atomics competes on price, some of its most dexterous strategies have involved overtly political tactics.

In 2006, a study conducted by the nonpartisan Center for Public Integrity and other watchdog groups said that General Atomics had spent $660,000, more than any other company, sending Congressional staff members on trips. Company executives said the jaunts allowed staffers to help educate foreign governments about the Predator’s successes, although they acknowledge that they also improved the company’s relationships in Washington.

“Everyone else was doing it, so we did, too,” says Mr. Cassidy at General Atomics. After the study was released, General Atomics decided to sponsor less than $10,000 worth of Congressional trips a year.

General Atomics has also hired scores of former military commanders and has partnered with Lockheed Martin to pursue a $2 billion Navy program, one of its first such joint projects.

Equally important, the company has begun whispering to lawmakers about the importance of diversifying the military marketplace, say lobbyists who requested anonymity because they were not authorized to speak about the company. In part to preserve that selling point, General Atomics has spurned acquisition offers from major military contractors, Mr. Blue says.

Analysts say the trends that have kept General Atomics’ fortunes aloft are likely to persist for decades.

“It took 30 years for the world’s militaries to completely absorb and implement the technologies that started with panzerdivizions,” says Mr. Goure, the defense analyst. Although military strategists talk about organizing war-making around information and intelligence, the truth is that it will take decades for that transformation to be complete. In the meantime, leaders are likely to latch onto emblems of transformation — like the Predator — as symbols of progress.

“Once you prove that something works, a flurry of activity starts that builds the infrastructure for more innovations, and fights over who controls the new technologies emerge,” Mr. Goure says. “That’s when things become permanent.”

Such fights have already broken out over Predators. This year, the Air Force told Congress that it, rather than other branches of the military, should control the deployment of unmanned planes. Commanders in other military branches have voiced disagreement.

“The Predator has become a very durable and powerful symbol in a very short time,” says Mr. Thompson, the defense analyst.

That transition is even more impressive, considering what the Predator cannot do.

“It is unclear if this plane will ever meet some of the key suitability tests the Air Force applies to most aircraft,” said Mr. Ehrhard, the military analyst. “But no one seems to care that much.”

Which brings us to a final bit of advice for visiting General Atomics: Don’t count on leisurely send-offs. When its corporate jet lands back in San Diego, the company’s president is likely to bound out, make a dash for his BMW — the one with the license plate reading “UAV S”) — and shout out a hasty goodbye.

“I gotta run,” said Mr. Cassidy, the pilot and executive, after a recent flight. “We’ve got planes to sell.”
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midastouch017 midastouch017 18 years ago
Iscar, Cyclone close to major supply deal
12.4.07 | 02:04 By Ora Coren
International transportation firm Bombardier is in advanced talks with Iscar and Cyclone Aviation Products that would make the two local companies regular suppliers for its factories worldwide. Representatives of the companies will meet this week to discuss ramping up cooperation.

Iscar, which was bought up by Warren Buffett last year, may supply cutting tools to Bombadier Transformation factories in Europe.

Contacts with Cyclone, part of the Elbit Systems group, are moving toward turning the aviation supply firm into a supplier for Bombadier's sister company, Bombadier Aviation. The deals could be worth tens of millions of dollars.

Eran Cohen, marketing and development director of Bombadier Transportation Israel, said the company is in talks with additional local companies, which are potential suppliers. He is committed not only to reciprocal purchases but rather as an Israeli has an interest in promoting local companies in the international market, he said.

Cohen added that after winning government train tenders, Bombadier is committed to make a reciprocal purchase in Israel worth 120 million euros. The company has already spent 77 million euros in the country.

TheMarker Hebrew edition yesterday reported that the aviation cooperation authority headed by Bina Bar-On is pressuring Bombadier to cut down delays in carrying out its reciprocal purchases.

http://www.haaretz.com/hasen/spages/847603.html
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midastouch017 midastouch017 18 years ago
IAI, Elbit Systems team on unmanned vehicle
Antitrust Authority director general Ronit Kan: The joint venture won’t harm competition.
Hadas Magen 28 Mar 07 16:00
Antitrust Authority director general Ronit Kan has exempted Israel Aerospace Industries Ltd. (IAI) and Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) from restrictive trade practices, allowing them to jointly develop, manufacture and market an unmanned vehicle for military use. Kan said that she was persuaded that the main aspects of the joint venture would not limit or prevent competition.
The two companies will develop unmanned vehicles for a Ministry of Defense request for border and road security missions. The companies agreed that they would set up a joint venture via a company owned in equal shares for this purpose.

Kan said that the joint venture was a horizontal collaboration between competitors in a new sector. She said that the development stage required heavy financial and human resource investment, which necessitated cooperation.

The exemption is conditional. Kan insists that all activity related to the joint venture will be carried out solely via the joint company, and that this company will not conduct any other activity, except with prior approval.

She also demands that IAI and Elbit Systems may not share information relating to the costs, sales, profits, or pricing of the joint venture, except what is necessary for promoting its predefined activity. The parties may not share information unrelated to the joint venture’s direct field of activity.

Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2007

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DewDiligence DewDiligence 18 years ago
Let’s get the consolidation over with!

http://biz.yahoo.com/prnews/070320/uktu005.html?.v=101

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Elbit Systems Issues Tender Offer for Balance of Tadiran Communications' Shares

Tuesday March 20, 4:27 am ET

HAIFA, Israel, March 20 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT , the "Company") announced today that the Company issued a cash tender offer to acquire the balance of the ordinary shares of Tadiran Communications Ltd. (TASE: TDCM) ("Tadiran") that are not currently owned by the Company, excluding shares held by Tadiran itself. The Company currently owns approximately 43% of Tadiran's outstanding ordinary shares.

The tender offer period will remain open through April 19, 2007 and the tender offer is for a price of New Israeli Shekel 186 (approximately $44.20) per Tadiran share. The tender offer provides that in the event the required approval majority of 95% of Tadiran's outstanding ordinary shares to acquire all of the Tadiran shares is not obtained, then, subject to the applicable approval requirements, the Company will purchase at the same price per share, between 624,534 - 1,175,655 (approximately 5-9.1%) of the outstanding shares of Tadiran. The tender offer documents, detailing the material terms of the offer, have been filed with the Israel Securities Authority.
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DewDiligence DewDiligence 18 years ago
ESLT’s UAVs Patrolling Iraq, Afghanistan

http://online.wsj.com

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03-19-07 1257ET

JERUSALEM (AP)--Small Israeli pilotless planes are gathering intelligence for U.S.-led forces in Iraq and Afghanistan, the manufacturer said in a statement Monday.

Elbit Systems (ESLT), one of Israel's leading defense electronics companies, said the little "Skylark" can be carried and operated by a single soldier, covering an area within a range of 10 kilometers day or night, the company said.

"Skylark is operational and currently deployed in the global war on terror in Israel, Iraq and Afghanistan," the statement said. It described the Skylark as suited for "close range, beyond-the-next hill, counter-terror missions."

There was no immediate comment from U.S. military officials.

Elbit said the Skylark would be unveiled to the public at the March 20-25 Australian International Airshow.

The Skylark is just one of several items of Israeli defense hardware deployed in Iraq and Afghanistan. Earlier this month, state-owned arms-maker Rafael said it had won a contract to supply the U.S. Marine Corps with state-of the-art armored vehicles for use there, and military analysts said Israeli firms had long been supplying and maintaining equipment for American ground and naval forces in Iraq, although both buyers and sellers generally preferred to keep a low profile.

Israel has used drones since the early 1970s, and its fleet has steadily increased. Air force officials say drones have become such an integral part of Israel's air power in recent years that their flight hours now outnumber those of manned fighter planes.

Two weeks ago the Israeli military unveiled the "Heron," Israel's largest surveillance drone, with a wingspan of 16.6 meters and an ability to fly for as long as 30 hours at a time at a speed of 120 knots (140 mph, 225 kph) and a height of 9,000 meters (30,000 feet). The military said it used the Heron during last summer's war in Lebanon.
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