Thales reports 16-percent leap in net profit

9th March 2007, Comments 0 comments

PARIS, March 8, 2007 (AFP) - French electronics and defence company Thales reported a 16-percent rise in full-year net profit on Thursday, supported by an improved operating margin, and forecast a further margin increase this year.

PARIS, March 8, 2007 (AFP) - French electronics and defence company Thales reported a 16-percent rise in full-year net profit on Thursday, supported by an improved operating margin, and forecast a further margin increase this year.

The group said net profit reached 388 million euros (509 million dollars) and that operating profit was 755 million euros, up 4.5 percent from 722 million in 2005.

Thales referred to a "marked improvement in financial performance," both in terms of profits and cashflow.

It said it returned to a positive net cash position of 90 million euros at the end of 2006, compared with a net debt of 400 million euros at the of 2005, which "places Thales in a strong position to pursue external growth operations in 2007."

This year, the group expects its operating margin to exceed 7.5 percent, after increasing to 7.3 percent last year from 7.0 percent in 2005.

Thales said consolidated revenues should reach 12 billion euros this year, compared to 10.264 billion euros reported for 2006, provided that recent agreements with Alcatel-Lucent and state-owned shipbuilder DCN are implemented.

Under these agreements, Thales acquired certain activities from Alcatel-Lucent and took a 25 percent stake in DCN alongside the French state, while Alcatel-Lucent raised its stake in Thales to 20.95 percent from 9.46 percent.

Copyright AFP

Subject: French news

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