Pentagon approves Israeli military technology
The Pentagon announced plans to purchase four Israeli-developed Iron Dome missile defense systems to help Israel defend the region around Gaza from short-range rockets. The first-in-its-class system is developed by Israeli government defense firm Rafael. Head of the Pentagon's Missile Defense Agency Lt. Gen. Patrick O'Reilly said, "In our budget, we have a proposal to assist with procurement of four more batteries." The Pentagon has responded to a request by U.S. President Barack Obama to buy the systems for Israel. O'Reilly added, "The system has proven efficient in wartime. This is one which the U.S. benefits from understanding and studying exactly how they've been successful with the Iron Dome system. U.S. troops could face similar threats from a combat zone." Israel is currently deploying two Iron Dome systems in the South protecting Beersheva and Ashkelon. Their positions may be changed as required. In April, the system successfully intercepted short range rockets fired from Gaza for the first time.
IAI profit soars 170% on strong revenue
Israel Aerospace Industries Ltd. (IAI) reported strong revenue and profit growth for the first quarter of 2011. Revenue rose 11% to $855 million from $769 million for the corresponding quarter, and net profit rose 170% to $46 million from $17 million. IAI increased sales in both military and civilian markets. The company also reported a capital gain from the sale of its 30% stake in avionics and electronic warfare systems developer Elisra Group to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) for $24 million. Wise Money Israel recommends this company's AA-rated bond on the Tel Aviv Stock Exchange, which yields 5.4% annually.
Sources: Jerusalem Post, Globes