Elbit full-year 2020 results: order backlog of 11,024 million

Elbit ended the year with an increase in its backlog of orders, a small increase in gross profit and stagnation in operating profit. "Our year-end backlog increased by 10% relative to the end of 2019 demonstrating sustained demand for our systems and services," said Bezalel (Butzi) Machlis

Bezalel (Butzi) Machlis. Photo: Elbit

Bezalel (Butzi) Machlis, President and CEO of Elbit Systems, said, "2020 saw our employees around the world successfully address the challenges presented by the global Covid-19 pandemic and enabled Elbit Systems to achieve positive results for both the fourth quarter and the year." 

"Our year-end backlog increased by 10% relative to the end of 2019 demonstrating sustained demand for our systems and services from our customers around the world. I am pleased with our operational performance in a challenging year, particularly the improved cash generation."

Revenues for the year ended December 31, 2020 were $4,662.6 million, as compared to $4,508.4 million in the year ended December 31, 2019. The main fields that contributed to the company's revenues were airborne systems and land systems. The growth of the sales of electro-optic systems was mainly due to the sales of ENV.

On a geographic basis, the increase in North America was mainly a result of higher sales of airborne systems and sales of ENV products. The increase in sales in Israel was mainly a result of sales of IMI Systems Ltd., which was acquired in 2018. The decrease in Asia-Pacific was mainly a result of lower sales of radios and airborne systems.

Non-GAAP operating income for the year ended December 31, 2020 was $390.1 million (8.4% of revenues), compared to $379.7 million (8.4% of revenues) in the year ended December 31, 2019. 
Non-GAAP net income attributable to the company’s shareholders in the year 2020 was $318.5 million (6.8% of revenues), as compared to $297.8 million (6.6% of revenues) in the same period of last year.

The company's backlog of orders for the year ended December 31, 2020 totaled $11,024 million, compared to a backlog of $10,029 million as of December 31, 2019. About 65% of the company's current backlog is attributable to orders from customers outside Israel. About 65% of the current backlog is scheduled to be carried out during 2021 and 2022. 

Net cash provided by operating activities in the year 2020 was $278.8 million, compared to $53.3 million net cash used for operating activities in the year ended December 31, 2019. The lower level of cash flow from operating activities in 2019 was mainly a result of lower collection of receipts and advances received from customers, mainly in Israel.

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