Elbit Systems will set aside $ 60 million as a result of the Corona crisis – the capital market

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Elbit Systems
-3.38%






Elbit Systems
38,650
-3.38%


Elbit Systems


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The Dual (NYSE: ESLT) reports a type of profit warning as a result of the effects of the corona crisis. According to the report, as a result of the crisis, the company suffered from a decline in demand for its products in the commercial aviation market.

The company notes that the significant slowdown in commercial air traffic, and the expectation that the recovery of commercial air traffic back to 2019 levels is expected to take several years, has reduced the demand for products and services for the commercial aviation markets. In addition, aircraft manufacturers for these markets have announced plans to reduce production rates to tailor their operations to low demand.

After reviewing the economic impact on the Company’s total assets, and those assets affected by the commercial aviation industry in particular, the Company expects to record non-cash expenses related to impairment of assets and write-offs in the third quarter of 2020, due to the Corona crisis, in the amount of $ 60 million.

These expenses will be recorded primarily under the “cost of sales” item in the consolidated income statement and will not be included in the non-GAAP results as they are expenses that are not part of the Company’s current business activities.

These expenses will be included in the financial results for the third quarter of 2020 which will be reported by the Company next month.

For the purpose of providing a scale, we note that in the second quarter of 2020, Elbit Systems’ adjusted net income (Non-GAAP) amounted to approximately $ 68.9 million (for the full article).

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  • 1.

    Elbit Systems is not cheap

    Investor
    26/10/2020
    10:20

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    If the US market does not like the profit warning ESLT could snatch

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