The Ticker / Elbit Systems Profits Edge Up on Higher Sales and an Order Backlog

Relatively small Nano Dimension printer sale to India lifts stock, as investors take notice.

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An Elbit drone.
An Elbit drone.Credit: Ancho Gosh / Jini

Elbit Systems profits edge up on higher sales and an order backlog

Defense electronics firm Elbit Systems reported slightly higher second quarter profits, boosted by higher sales and a growing order backlog. Elbit, Israel’s largest publicly traded defense firm, said yesterday it earned $1.25 per diluted share excluding one-time items in the second quarter, up from $1.23 a share a year earlier. Revenue gained 6.7% to $749.6 million, led by growth in sales of land systems to the Asia Pacific region. “Growth in our backlog over the last two years has led to our current positive revenue growth,” said CEO Bezhalel Machlis. Elbit’s order backlog amounted to $6.3 billion, up from $6.2 billion a year ago. Some 69% of the backlog is outside of Israel and 60% is slated to be performed during the second half of 2015 and in 2016. Elbit declared a dividend of 37 cents a share for the second quarter, up from 35 cents in the first quarter. (Reuters)

Relatively small Nano Dimension printer sale to India lifts stock, as investors take notice 

News of a relatively small $250,000 sales contract by 3-D-printer maker Nano Dimension to India sent the company’s shares 3.5% higher in early trading on the Tel Aviv Stock Exchange yesterday on heavy volume. The sale to India of printers and ink to Vigilante Environmental Solutions was enough to spark investor interest in Nano, which just about a month ago inked a business development contract in India with Vigilante. The sale includes the purchase of five Nano Dimension 3-D printers as well as ink. Vigilante will be managing new representative offices that Nano will be opening in the Indian cities of Bangalore and Delhi. Nano’s shares closed 1.9% higher yesterday on the Tel Aviv Stock Exchange. The company is trading at a market value of 229 million shekels ($60.2 million). (Dror Raich)

Fridenson stock gains on Ashdod freight bid 

Shares of freight company Fridenson Logistic Service surged on the Tel Aviv Stock Exchange yesterday, closing up 16.7% on the day on disclosure that the company is the successful bidder on the contract to operate the rail freight terminal adjacent to the Ashdod port. The facility will allow the direct transfer of containers and other goods between the recently completed rail terminal and the docks at the port. Fridenson will be paying annual leasing fees to the Israel Ports Development and Assets Company of 10 million shekels ($2.6 million) for 15 years with an option to extend the lease for another 10 years. It is thought that operation of the terminal may result in losses to Fridenson, particularly in the initial years, but operation of the cargo terminal is seen as having strategic value to the company, which is seeking to position itself as a major Israeli freight and logistics firm. (Eran Azran)

Hot summer for Tadiran

Second quarter revenues at Tadiran Holdings, the air conditioner and household appliance firm, rose by 10.4% to 184 million shekels ($48.3 million), nearly all of which, 179 million shekels, was from air conditioners that the company sells under the brands Tadiran, Amcor, Toshiba and Carrier. Perhaps unsurprisingly, the second and third quarters of the year account for most of the company’s sales. Second quarter gross profits, which are affected by foreign currency exchange rates, declined by 3.2% in the quarter over the quarter last year, while its net profits rose 164% over the second quarter of last year to 10.1 million shekels. The huge jump is the result of a provision for decline in asset value that the company took in the second quarter last year. Tadiran shares rose 2.5% for the day in Tuesday TASE trading. (Eran Azran)

TASE shares, including energy stocks, off somewhat as natural gas talks hit a snag

Despite bullish sentiment on Wall Street on Monday and news yesterday that the Greek government had sealed agreement over a new bailout, shares on the Tel Aviv Stock Exchange declined overall yesterday. The benchmark Tel Aviv-25 index declined 0.63% on the day to 1,711.90 points and the Tel Aviv-100 dropped by 0.37% to 1,487.27. Trading volume was 1.34 billion shekels ($351 million). In the wake of the news of developments in Greece, the euro surged against the euro by 1.11% to a representative rate of 4.2144 shekels. Energy shares, including Ratio Oil Exploration, Delek Drilling and Avner Oil Exploration, lost ground against the backdrop of reports of a stalemate in negotiations with the government over regulatory policy for offshore natural gas production sites. (Eran Azran)