Business results for the first quarter of 2002 were better than projections, which anticipate that in the second half of the year 2002, conditions
in the market place will improve.
In his comments for the company's financial results in the first quarter of 2002, Mr. Ori Orr, Chairman of the Board said: "IAI is coping today
with complex and harsh market conditions. The strength and resilience of the company are being put to a test. IAI's financial results for the
first quarter of 2002 prove once again that the company has prepared itself for a situation of crisis in the market; a situation that has started 18
months ago and continues today. Despite encouraging signs, we still cannot announce the end of the difficult era. IAI's management is
prepared for adaptations in the company's activities for the future to come."
Mr. Moshe Keret, IAI's President & CEO said: "In the first quarter of 2002, IAI has been operating in a trying and and highly competive
business environment, that has been characterized by the continuation of the economic slowdown in the company's principal markets for
commercial products, and in the escalation of the security situation in Israel. In light of these circumstances, the company's financial results in
this quarter deserve special appreciation. The results were accomplished thanks to the restraint in expenditure and the continuation of the
austerity program. The significant devaluation in the Shekel's (NIS) rate of exchange has also aided in achieving the results, since IAI is the
largest exporter in Israel."
In his remarks on IAI's financial results for the first quarter of 2002, Dr. Abraham Knobel, Vice President Finance, added: "The devaluation in the
Shekel's (NIS) rate of exchange had a positive influence on the company during the first quarter of the year. Keeping the current rate of
exchange will increase IAI's competitive ability in export markets, and will contribute to the renewal of growth both in IAI and in the entire
Israeli market, provided the economic policy will prevent the erosion of the devaluation by a local increase of prices."
Israel Aircraft Industries (IAI) reported net profits of $15 million for the first quarter of 2002, compared with $20.1 million in the same period
last year, a decrease of 25 percent. Profits from operations increased by 24 percent, from $15.9 million to $19.7 million.
Company sales in the first quarter of 2002 totaled $509 million, compared to $499 million in the same period last year, an increase of 2 percent.
The company's order backlog at the end of the first quarter of 2002 totaled $3.7 billion.