06:24 AM EDT, 03/26/2024 (MT Newswires) -- Elbit Systems ( ESLT ) reported mixed fourth-quarter results on Tuesday as costs related to the closure of a subsidiary weighed on the Israeli defense electronics company's earnings.

Adjusted earnings came in at $1.56 a share for the December quarter, down from $1.71 a year earlier. The company attributed the decline to costs linked to the write-off of an uncollectible balance of contract assets, as well as expenses from the discontinuation of a subsidiary's operations.

Earlier in March, Elbit ( ESLT ) said it expected to incur a non-cash hit of $52 million during the fourth quarter, related to those expenses. Total operating costs widened to $314.5 million from $260.3 million year-on-year, according to the company.

Revenue advanced to $1.63 billion from $1.51 billion in the prior-year period. "The acceleration in revenue growth reflects the successful implementation of our operational transformation plan, as we increase capacity to convert a growing backlog into revenue," Chief Executive Bezhalel Machlis said in a statement.

Aerospace revenue rose 3% to $503.4 million mainly due to higher unmanned aerial systems sales in Asia Pacific and Europe. The land segment jumped 30% to $369.4 million driven by artillery and weapon stations sales in Europe and ammunition sales in Israel.

In the command, control, communications, computers, intelligence surveillance and reconnaissance and cyber segment, revenue decreased to $188.6 million from $190.3 million. Intelligence, surveillance, target acquisition and reconnaissance and electronic warfare revenue climbed 15% to $304.9 million. Elbit Systems ( ESLT ) of America dipped 2% to $409.5 million because of lower sales of airborne systems.

Elbit's ( ESLT ) backlog totaled $17.8 billion at the end of December, compared with $15.1 billion the year before. Roughly 72% of the current backlog is made up of orders outside of Israel, while the company anticipates about 60% of the orders to be carried out during this year and in 2025.

"Elbit Systems ( ESLT ) is committed to supporting the increased requirements of the Israel Ministry of Defense as well as maintaining our commitments to all our customers around the world," according to Machlis. "The significant increase in the order backlog in 2023 highlights the relevance of Elbit Systems' ( ESLT ) portfolio of advanced technological and operationally proven solutions."

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