THALES PUBLISHES NINE MONTH REVENUE AND ORDER INTAKE
09 Nov 10. Thales (NYSE Euronext Paris: HO) today published its nine-month revenue and order intake figures as at 30 September 2010. Luc Vigneron, Chairman and Chief Executive Officer declared: “With a strong order book, Thales revenues have increased by 4% for the first nine months of the year. Nonetheless, as expected, our order intake is lower than the exceptionally high levels of the last two years, in an environment marked by tight public spending in Europe and despite early signs of a recovery in commercial aeronautics. We are focused on strengthening our competitiveness and our commercial position on emerging markets.”
Thales: Revenues and order intake at 30 September 2010
• Revenues: €8.66bn, up +4% (+1% in organic terms1)
• Order intake: €7.38bn, down –13% (-15% in organic terms1) from the exceptional levels of 2008 and 2009
• Order book: €24bn, still close to two years of revenues
New order intake for the first nine months of 2010 amounted to €7,38m, down 13% (-15% in organic terms) compared to the same period for 2009, when major orders were received, especially for export business. The book-to-bill ratio stood at 0.85 at 30 September 2010. Exchange rate variations had a positive impact of €203m, essentially due to the rise of the Australian dollar and the sterling against the euro.
These new orders include four contracts with a unit value in excess of €100m: two satellites for a Gazprom affiliate in Russia, a logistics support contract for the Watchkeeper UAV programme in the UK, a military satellite for Turkey and an in-flight entertainment system contract for Qatar Airways. Orders with a unit value below €100m, which had been the most affected by the economic environment in 2009, are continuing to hold firm.
“Organic” means “on a like-for-like basis and with constant exchange rates.”
Order intake for Defence & Security business amounted to €3,702m, down 24% (-27% in organic terms) compared to the first nine months of 2009. The expected pressure on defence orders, already significant by the end of June, was confirmed in the third quarter. Orders for C4I Systems were substantially down from the high levels of last year (during which several export contracts were signed), despite relative stability in orders for critical information systems business. Similarly, despite orders for civil radar systems (notably in Asia and Europe) and a contract for an air operations centre in the Middle East, order intake for Air Operations business did not reach the same level as for the first nine months of 2009, when several major orders were received (replication contracts on the LOC1 programme with NATO, GM400 radars in Finland). Land Defence business order intake also fell, as missile activity orders could not compensate for the shrinkage of optronics orders (UK FIST contract in 2009). However, growth in order intake was strong in Defence Mission Systems, with UAV contracts in the UK (Watchkeeper support, Lydian) and the Rafale modernisation and support contracts.
Order intake for the Aerospace & Transport business segment amounted to €3,646m, an increase of +3% (+1% organic) in relation to 30 September 2009. The book-to-bill ratio therefore remains close to 1. With the booking of Turkey’s Göktürk military observation satellite, space order intake posted a slight increase even though contract with US-based Iridium (a constellation of 81 satellites) had not yet been booked by the end of September2. In spite of the award of the contracts for the modernization of the Flushing line on the New York subway and the extension of the Manchester Metrolink urban transport project,
Transport Systems order intake remained below the very high levels of the same nine-month period in 2009, when several major orders were booked (North-South railway line and Mecca metro system in Saudi Arabia, high speed train lines in Spain). However, Avionic