Rafael Advanced Defense Systems ended the year 2014 with a net profit of $90 million, with orders totaling $3 billion, an order backlog of $5 billion and sales of $1.9 billion.
Rafael develops and manufactures advanced defense systems for the IDF and the defense establishment in Israel and for many countries around the world, and conducts global partnerships.
As noted, in 2014 Rafael posted record orders totaling $2.9 billion, compared to $1.8 billion in 2013. Rafael's net profit in 2014 was $90 million (4.6% of sales).
Rafael's profits in 2014 were achieved for the most part from its production, R&D, and marketing in the following fields: air defense, air-to-ground systems, multi-purpose, electro-optical-tactical precision missile systems, navigation, targeting and tactical reconnaissance pods ("Litening"), Communication and Intelligence systems, space propulsion, and more.
Rafael's order backlog in 2014 was $5 billion, comprising approximately 2.5 years of sales activity, of which 55% is intended for export to many countries in Latin America, the U.S., Asia and others.
In 2014 Rafael continued its efforts to expand existing markets and enter developing markets, while creating new local partnerships. During the year, Rafael signed a joint-venture agreement with Bharat Forge of India, aimed at strengthening the sales potential in the important Indian market.
In addition, the year 2014 was characterized by Rafael’s continued investment and professional development of its human capital, while maintaining its R&D (8% of its sales), in the professional development of its employees, and its significant cooperation with academic institutions.
VADM (ret.) Yedidia Yaari, President and CEO of Rafael, said that in 2014 Rafael's contribution to Israel's security was well-witnessed during Operation Protective Edge, with Iron Dome's high interception rates of some 90%, as well as the central role of other Rafael technologies, including its Spike Family missiles, the Trophy APS for MBT's and other system that acted as force multipliers with the IDF. This was supported by round-the-clock work by many of Rafael's scientists, engineers and technicians. At the same time the company continued its marketing efforts as well as expansion of its global partnerships.
"Rafael continues to offer its customers and partners a wide variety of advanced solutions and systems for specific needs and requirements. Many of these have already proven themselves in combat. In 2014 we increased our activity in the fields of intelligence and Cyber warfare, as well as homeland security and strategic asset and infrastructure protection", said Yaari.
Yaari added that the company's human resource is at the forefront of its ability to deliver the most advanced technologies to customers to the IDF and to customers around the world, thereby enabling Rafael's continued growth both in Israel and globally.
Brig. Gen. (ret.) Itzhak Gat, Chairman of the Board at Rafael, said that Rafael continues to be a main pillar in Israel's security, economy and society, this thanks to Rafael's managers and employees and managers. Our technological and financial resilience and robustness enable us to make substantial investment in two significant fields: nurturing our human capital and investing in R&D. this will ensure the next generations of advanced defense systems that will secure Israel's military supremacy in the air, on land and at sea. Such capabilities, developed by Rafael's employees enable the IDF to achieve successful operation capabilities such as the ones we witnessed during Operation Protective Edge.
Gat added that the realization of Rafael's potential in the international markets is a central component in the company's growth path. This will allow us to continue to invest substantial resources in R&D. With the receipt of the 2014 financial results, the Chairman of the Board conveyed his thanks to the CEO and to the company’s management and employees for their invaluable contribution to Rafael’s international business foundation and to Israel’s security.