Israel Aerospace Industries (IAI) said a significant increase in cargo conversions and MRO activity anchored improvement in its commercial aviation division in the third quarter.
IAI’s Aviation Group reported a gross profit of approximately US$44 million in the first nine months, up from US$42 million in the corresponding period last year, and US$14 million gross profit in the third quarter, compared with a gross loss of approximately US$4 million the previous year.
Sales of the Aviation Group in the first nine months decreased from US$877 million to US$872 million. In the third quarter, sales were up 15.5 per cent year-on-year to approximately US$306 million.
The Aviation Group reported an operating loss of US$7 million in the first nine months, an improvement on the US$18 million loss in the corresponding period of last year. In the third quarter, operating income amounted to approximately US$1 million compared with an operating loss of approximately US$22 million in the previous year.
The group recorded a net loss of US$18 million in the first nine months (compared with a loss of approximately US$36 million in the corresponding period of last year) and a net loss in the third quarter of US$4 million compared with US$28 million last year.
Reflecting on IAI’s overall results, CEO and president Boaz Levy (pictured) noted that the third quarter had been “the most profitable quarter in company history and we are recording a net income of US$131 million, leading to a 17 per cent growth in net income”.
He added: “The significant growth in income is thanks to the company’s significant operations in Israel and abroad, together with commercial success and cooperation around the world. The company continues to focus its activities on all business lines in the backdrop of the recovery in the global aviation industry. The company is also taking steps to strengthen its corporate management by promoting executives both from within and outside the company, as the workforce recovers from the Covid-19 era.
“The company’s performance over the first nine months of 2021 earned it a higher credit rating in the third quarter, and continues to contribute to enhancing its position in the capital market and readiness for an imminent IPO.”