Media technology group Thomson returns to profit

15th February 2007, Comments 0 comments

PARIS, Feb 15, 2007 (AFP) - The French media technology group Thomson said Thursday it was back in the black, reporting a full-year net profit of 55 million euros (72 million dollars) against a loss of 573 million a year earlier.

PARIS, Feb 15, 2007 (AFP) - The French media technology group Thomson said Thursday it was back in the black, reporting a full-year net profit of 55 million euros (72 million dollars) against a loss of 573 million a year earlier.

The return to profits was achieved by shedding loss-making activities and focusing on core businesses, the group said in a statement. Net profit for the second half of the year was 126 million euros, it said.The company, which is transforming itself from a manufacturer of consumer electronics into a provider of services to media companies and film studios, said it was targeting "strong growth" in net profit in 2007-09.

It sees sales growth accelerating through the period, with compound growth rising at rates that are in line with or faster than overall market growth.

Thomson also sees sharp reductions in the impact of residual non-core activities in 2007-09, with an end to losses from discontinued activities after 2007.

For core business activities, full year earnings before interest and taxes was 504 million euros, down from 512 million, the group said.

The full-year margin was 8.8 percent, helped by a strong second-half margin of 11.7 percent, up one percentage point from a year earlier.

The company's board plans a 10 percent rise in the dividend for full year 2006, to 0.33 euros per share.

On the Paris stock exchange, Thomson shares fell 2.51 percent to 15.13 euros in early afternoon trading.

Copyright AFP

Subject: French news

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