What Happened
Israel Aerospace Industries Sees Record Profits Despite Payment Issues
Israel Aerospace Industries (IAI) has reported record results, with a backlog of $35 billion and a 47% jump in net profit. However, the company is facing a significant negative cash flow due to unpaid bills from its biggest client, the Defense Ministry, which is embroiled in a dispute with the Treasury over the defense budget. Despite this, IAI’s sales rose 35% to $2.189 billion, with 67% coming from export. The company has cash reserves of $4 billion, but the situation may lead to a need for privatization or external funding, as reported by Unknown Source.