Thales Releases First-Half Financial Statements
Wednesday, July 26, 2017 | Comments

Thales’s board of directors met 25 July to review the financial statements for the first half of 2017.

First-half 2017 order intake amounted to €5.97 billion (US$6.9 billion), up 10 percent compared with the first half of 2016. At 30 June, the group’s order book stood at €31.9 billion (US$37.1 billion), which represents almost 2.1 years of sales, improving visibility for the businesses in the coming years.

Sales in H1 2017 came to €7.24 billion (US$8.42 billion), up 5.8 percent on a reported basis, and up 5.9 percent at constant scope and currency. Emerging market sales maintained a high level of growth (15 percent organic growth), while sales in mature markets recorded moderate organic growth of 2.2 percent. Emerging markets thus accounted for 32 percent of the group’s sales in the period compared with 24 percent in first-half 2014 and 29 percent in the first half of 2016.

Consolidated net income, group share was €336 million (US$390 million). This figure was down 12 percent on first-half 2016, during which the group benefited from the sale of its interest in Thales Raytheon Systems to Raytheon.

Standing at €216 million (US$251 million), free operating cash flow was positive in the first half of 2017 as in the prior-year period, driven by the performance achieved in terms of working capital and by the temporary slowdown in operating investments. At 30 June 2017, net cash amounted to €2,294 million, down €72 million compared with end-2016, but up €855 million over the past 12 months (€1,439 million at 30 June, 2016).

Sales in the defense and security segment represented €3.63 billion, up 6.1 percent compared with the first half of 2016. Almost all businesses contributed to this momentum. Only the secure communications and information systems business experienced a slowdown, with the positive dynamic in military networks and infrastructure systems offset by declining sales in radio communications products.

Thales said the results are in line with expectations, and the group confirms all its objectives. Thales should continue to benefit from positive trends in most of its markets. Although below the highs recorded in 2015 and 2016, the order intake in 2017 should remain brisk, at around €14 billion (US$16.3 billion). Sales in 2017 should see mid-single-digit organic growth compared with 2016.

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