Israel's Elbit Systems Q2 profit dips, warns on compensation plans

An Elbit Systems Ltd. Hermes 900 unmanned aerial vehicle (UAV) is seen at the company's drone factory in Rehovot, Israel, June 28, 2018. REUTERS/Orel Cohen/File Photo

JERUSALEM, Aug 16 (Reuters) - Israeli defence electronics firm Elbit Systems (ESLT.TA), on Tuesday reported lower second-quarter profit and said it could keep seeing higher expenses due to stock price-linked compensation plans.

The company earned $1.73 per diluted share excluding one-time items in the quarter compared to $2.11 per share the previous year. Revenue was up marginally to $1.303 billion from $1.302 billion.

Elbit was forecast to post revenue $1.336 billion and earnings of $2.09 per share, according to Refinitiv data.

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The company's board declared a dividend of 50 cents per share for the second quarter to be paid on Oct. 24.

Elbit noted that in the wake of a recent rise in its share price, "if the share price remains at current levels, or (there are) further increases, there would be a significant increase in

compensation expenses, related to the company's stock price linked employee compensation plans."

Elbit's Tel Aviv-listed shares are up 41% this year.

Elbit said its backlog of orders reached $14.1 billion at the end of June, up from $13.7 billion the previous quarter. About 74% of that comes from orders outside Israel, and some 52% is due to be performed in 2022 and 2023.

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Reporting by Ari Rabinovitch Editing by Steven Scheer

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