Israeli Defense Electronics Firm Wins U.S. Army Contract Worth Up to $103 Million

Business in Brief: Real estate developer Gazit-Globe swings to profit in Q3; Bezeq Israel Telecom releases Q3 results; Discount Investment to get year-end boost with Adama sale; Tel Aviv shares edge downward.

The Hermes 900 unmanned aerial vehicle manufactured by Elbit Systems Ltd.

Elbit Systems wins U.S. army contract worth up to $103 million

Israeli defense electronics firm Elbit Systems Ltd said Wednesday its U.S. subsidiary, Elbit Systems of America, won a contract worth as much as $103 million for the production of mortar weapon systems. The indefinite delivery/indefinite quantity contract will be carried out over five years. An initial purchase order, in an amount that is not material to the company, has already been awarded. Elbit Systems of America signed a memorandum of understanding with the U.S. Army’s Watervliet Arsenal in New York, which will effectively employ Watervliet as a subcontractor to Elbit on many mortar components. (Reuters)

Real estate developer Gazit-Globe swings to profit in Q3

Gazit-Globe, Israel’s largest real estate development company, moved to a profit in the third quarter, boosted by a fair value gain from investment property and higher finance income. Net profit was 381 million shekels ($99 million) in the quarter compared with a loss of 92 million a year earlier. Rental income decreased to 1.51 billion shekels from 1.55 billion, while net operating income (NOI) slipped to 1.06 billion from 1.07 billion. Excluding the effect of exchange rate fluctuations, NOI increased 0.3 percent. The fair value gain from investment property and property under development was 291 million shekels in the third quarter versus stability a year earlier. Gazit-Globe will pay a quarterly dividend of 0.35 shekel per share, unchanged from the second quarter. (Reuters)

Bezeq Israel Telecom releases Q3 results

Bezeq Israel Telecommunication Corp released its third-quarter financial results Wednesday. The telecommunications company reported net profit of 394 million shekels versus 407 million shekels in the parallel quarter of 2015. Third-quarter revenue was 2.51 billion shekels, versus 2.60 billion shekels in the parallel quarter. It had been forecast in a Reuters poll of analysts to post quarterly net profit of 377 million shekels, and revenue of 2.53 billion shekels. (Reuters)

Discount Investment to get year-end boost with Adama sale

Discount Investment Corp said it will post an 887 million shekel ($230 million) profit at the end of the year and an increased shareholder’s equity of about 1.1 billion shekels after completing the sale of Adama. Discount Investment Wednesday said it had completed the sale of its 40 percent stake in crop protection maker Adama to China National Chemical Corp (ChemChina), which already held 60 percent. The company said it received upon completion of the deal $230 million in cash. Argentinian businessman Eduardo Elsztain, the controlling shareholder in Discount Investment’s parent company IDB Development Corp, said: “There is no doubt that IDB the day after the Adama deal is stronger.” (Reuters)

Tel Aviv shares edge downward

The Tel Aviv Stock exchange finished Wednesday's trading session with losses on the leading indexes. The blue-chip Tel Aviv-25 Index slopped down 0.15% to close at 1,450 points, while the broader Tel Aviv-100 Index declined by a similar measure to close at 1,267 points. The Banks-5 index gained 0.1%, and oil and gas shares gained 0.5%. Insurance shares lost 0.5%. Communications shares gained 2%, led upward by Bezeq, which gained 2.2% after releasing its financial reports. Total turnover was 1.15 billion shekels. Other notable shares included Israel Chemicals, down 2% after releasing financial reports, and El Al, down 2% following its 13% drop the day before amid labor troubles with pilots. Electra reported third-quarter revenues of 1.3 billion shekels, up from 1.1 billion in the parallel quarter last year, and saw its share price increase 0.5% Wednesday. (Shelly Appelberg)