Israeli defence electronics specialist Elbit Systems reported higher quarterly profit on Tuesday and said it expects its night-vision business and other acquired operations to prosper as global defence spending continues to rise.
The company’s U.S. business last year won a U.S. Army contract for enhanced night-vision systems that use thermal imaging and augmented reality, with the deal worth up to $442 million. Elbit Systems of America in 2019 bought the night-vision business of L3Harris Technologies for $350 million and has also won German and Dutch military deals.
“It has been a big success,” Elbit Chief Executive Bezhalel Machlis told Reuters after reporting increased first-quarter profit and revenue. “We expect hundreds of millions of dollars in additional contracts in this area.”
Machlis said that defence spending is growing but Elbit is still suffering from the COVID-19 pandemic because there are no air shows to showcase its equipment, increasing its reliance on dialogue through its global subsidiaries.
He said that Elbit, which has operations in Israel, Europe, North America, South America and the Asia-Pacific region