2017 Half-year results
Thales鈥檚 Board of Directors met on 25 July 2017 to review the financial statements for the first half of 2016 [1].
Patrice Caine, Chairman and Chief Executive Officer, commented: 鈥淎t the end of June, Thales is once again confirming its growth momentum, with a solid order intake and a 5.9% organic sales growth, ahead of the full year target. The Group鈥檚 profitability continues to increase, with EBIT and adjusted net income up by more than 15% for the third year in a row. At the same time, we are stepping up our R&D investments, which increased by more than 10% in H1 2017, in order to reinforce our technological leadership. These results reflect the strength of our business model and its ability to create value.鈥
鈥淚n parallel, the Group is consolidating its leading position in the digital transformation of its markets. We are investing 鈧150 million over three years to set up a cross-functional 鈥榙igital factory鈥 in order to capitalise on our unique portfolio of digital technologies. The strategic acquisition of Guavus, which is currently underway, will enable us to implement real-time big data solutions on an industrial scale across all of our businesses.鈥
鈥淭he first half reinforces our confidence in Thales鈥檚 ability to achieve its full year targets and, as a result, record another year of growth in sales and profit.鈥
- Solid order intake: 鈧6.0 billion, up 10%
- Sales: 鈧7.24 billion, up 5.9% on an organic basis [2]
- EBIT [3]: 鈧637 million, up 16% (up 17% on an organic basis)
- Adjusted net income, Group share [3]: 鈧424 million, up 15%
- Consolidated net income, Group share: 鈧336 million, down 12%
- Very good level of free operating cash flow [3] for a first half year: 鈧216 million
(H1 2016: 鈧45 million) - 2017 objectives confirmed
| In 鈧 millions, except earnings per share (in 鈧) | H1 2017 | H1 2016 | Total change | Organic change |
| Order intake | 5,972 | 5,423 | +10% | +10% |
| Order book at end of period | 31,861 | 33,530 [4] | -5% | -4% |
| Sales | 7,241 | 6,846 | +5.8% | +5.9% |
| EBIT [3] | 637 | 551 | +16% | +17% |
| in % of sales | 8.8% | 8.1% | +0.7pts | +0.9pts |
| Adjusted net income, Group share [3] | 424 | 367 | +15% | |
| Adjusted net income, Group share, per share [3] | 2.00 | 1.74 | +15% | |
| Consolidated net income, Group share | 336 | 384 | -12% | |
| Free operating cash flow [3] | 216 | 45 | +380% | |
| Net cash at end of period | 2,294 | 2,366 [4] | -72 |
We are pleased to invite you to participate in our conference call in English:
Wednesday, 26 July 2017 at 8:30 am (CET)
Dial-in number from France: + 33 (0) 1 70 77 09 47
International dial-in number: + 44 (0) 203 367 94 59
It will be also possible to follow the conference call through a webcast by using the following link:
If you are unable to listen to the call live, a digital replay will be available a few hours after the end of the conference call and will remain available for 90 days. To access the replay, please dial +33 (0) 1 72 00 15 00 or +44 (0) 203 367 94 60 (code 309644#).
Notes
[1] The limited review of the financial statements has been completed and the statutory auditors鈥 report has been issued following the meeting of the Board of Directors.
[2] 鈥淥rganic鈥 means at constant scope and currency.
[3] Non-GAAP measures, see definitions in the press release.
[4] At 31 December 2016