Thales confirms its goals for 2022, organic growth reaches 2.7% in the 1st quarter, company news

PARIS (Agefi-Dow Jones) – The Thales Technology and Defense Group on Thursday reaffirmed its forecast for 2022 after organic growth of 2.7% in the first quarter.

From January to March, the company’s turnover amounted to 3.73 billion euros, which is 4.4% more than in one year according to published data and 2.7% more than the same indicators and constant exchange rates.

The company benefited from the dynamism of its aerospace information and digital identification and security divisions, which recorded organic growth of 4.2% and 12%, respectively, during the quarter. On the other hand, the largest defense and security unit in the group recorded a 1.1% drop in activity on an equal footing.

This small drop was “expected” as we “had a high database” with organic growth of more than 12% in the first quarter of 2021, said Pascal Buchia, general manager of finance and information systems, during a conference call with reporters. . The group expects a return to growth in the second quarter, he added.

Thales also said it received orders worth 3.03 billion euros in the first quarter, down 6% year-on-year. The group was again punished with a demanding basis for comparison: the company recorded four large contracts worth more than 100 million euros in the first three months of 2021 against two in the first quarter of 2022.

According to the consensus available on the company’s website, analysts expected an average turnover of 3.72 billion euros and the number of orders – 2.78 billion euros.

However, the number of orders for the Thales Department of Defense and Security is expected to increase sharply in the second quarter. The group recognizes a contract related to the order of the United Arab Emirates 80 Rafale, a Dassault Aviation fighter, whose Thales equipment is from 20% to 25% of the cost, said Pascal Buchia. The leader also mentioned a contract worth more than 100 million euros, this time related to the order of Greece’s three defense and intervention frigates from the Naval Group.

Athens has also ordered six additional Rafales from France, which are “likely” to be included in the Thales book in the second quarter, Pascal Buchia said.

For 2022, Thales has confirmed that it forecasts revenue of 16.6 billion to 17.2 billion euros, which corresponds to organic growth of 2% to 6%. Thales is still counting on a profit margin of more than 1 and an operating margin rate of 10.8% to 11.1%.

“This forecast takes into account the impact of the Ukrainian crisis on our activities in 2022,” Pascal Buchia reminded, confirming the impact of “slightly less than 1%” on trade, as reported earlier this year.

The leader stressed that Thales still faces “some uncertainty”, including on the supply of semiconductors, which continue to be “delicate”, or even on the resumption of air traffic “with a tension point in Asia”, and especially in China, where this traffic decreased “.

-Julien Marion, Ajefi-Dow Jones; +33 (0) 1 41 27 47 94; [email protected] ed .: VLV

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1:01 PM Eastern Time on April 28, 2022 (05:01 GMT)