Israel-based defense contractor Elbit Systems, which has a major U.S. subsidiary, acknowledged issues in its operations on April 13 and said it started carrying out unspecified “cost-control measures to help limit the financial impact on the company.”
On March 25, the company said it had not seen a material impact from the novel coronavirus outbreak. “Subsequently some of our businesses have begun to experience disruptions,” according to a new statement. “We are monitoring these businesses closely and plan to update the market in due course.”
“Elbit Systems has a healthy balance sheet, adequate levels of cash and access to credit facilities that provide liquidity when necessary,” the defense contractor said. “We have used part of our financial resources to fund our suppliers and build buffer stocks of inventory where required.”
The company said it was closely monitoring and managing its supply chain, “particularly as it relates to maintaining adequate inventory of critical components.” At the same time, to deliver products to government customers or others, it is chartering dedicated freighter aircraft to meet delivery schedules.
Elbit plans to report first-quarter 2020 results by the end of May.
Related Content
