(RTTNews) - Defense contractor Elbit Systems Ltd. (ESLT: News ) reported Wednesday an significant increase in profit for the third quarter, helped mainly by revenue growth and lower financial expenses on currency hedging activity. Additionally, the board declared a dividend of $0.36 per share.

The Israeli group's quarterly net income attributable to the company grew 63.7% to $58.25 million or $1.35 per share from $35.60 million or $0.83 per share in the previous year. On average, three analysts polled by Thomson Reuters expected earnings per share of $1.14 for the quarter. Analysts' estimate typically excludes special items.

With a market capitalization of $2.64 billion, Elbit Systems develops, manufactures and integrates defense electronic and electro-optic systems. Its areas of operation includes Airborne systems, Land systems, C4ISR systems, Electro-optics and Other non-defense engineering and production services.

Elbit's quarterly revenue rose 9.3% year-over-year to $732.52 million from $671.19 million last year, yet fell short of Street view of $755.40 million. Geographically, U.S., Europe, Israel and other countries contributed to 28.6%, 27.5%, 22.9% and 21% of the total revenues, respectively. By areas of operation, C4ISR systems contributed $289.6 million or 39.5% of total revenues, however Electro-optics revenues grew to $117.5 million from $63.7 million, contributing 16% of revenues for the latest third quarter.

During the latest quarter under review, gross profit increased by 8.9% to $217.3 million from $199.5 million. Net research and development expenses were $56 million as compared to $45 million, reflecting on increased efforts on development and adaptations of products and systems to market requirements. Marketing and selling expenses, as well as general and administrative were higher, on the group's enhanced efforts to pursue wide range of business opportunities in various markets.
Net financial expenses fell to $0.6 million from $16.1 million, helped by hedging activity, which reduced the company's exposure to changes in the value of U.S. Dollar versus the Israeli Shekel. Taxes on income were $11.4 million, as compared to $16.4 million in the third quarter of 2008.

Elbit's board declared a dividend of $0.36 per share for the third quarter of 2009, whose record date is December 1, 2009 and payable on December 14, 2009, net of taxes and levies, at the rate of 16.03%.

Backlog of orders totaled $5.01 billion as of September 30, 2009, as compared with $5.03 billion as of December 31, 2008. Approximately 66% of the current backlog is due to orders from outside Israel. Approximately 57% of the current backlog is scheduled to be performed during the remainder of 2009 and during 2010, the company said.

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