© Reuters. FILE PHOTO: The logo of Thales Group is seen during a visit at the Thales radar factory in Limours, France, February 1, 2023. REUTERS/Gonzalo Fuentes/File Photo TCFP -3.58% Add to/Remove from Watchlist Add to Watchlist Add Position Position added successfully to:
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PARIS (Reuters) -France's Thales on Tuesday posted a 7.5% underlying rise in nine-month revenue to 12.85 billion euros ($13.62 billion), led by resurgent demand for jetliner components and military equipment.
Europe's largest defence electronics maker, which also provides civil aircraft systems and digital security equipment, said its order intake fell 18% from the same period last year, which had been buoyed by a Rafale fighter order from the United Arab Emirates.
Nine-month orders came in at 12.37 billion euros, below the level of revenue, but Thales reaffirmed its full-year targets including a book-to-bill ratio above one.
Chief Financial Officer Pascal Bouchiat said the order comparison had also suffered from particularly strong demand for the company's satellites in 2022, but said civil aviation had demonstrated a "strong commercial dynamic" this year.
"I have no doubt that we will be above one (in full-year book-to-bill)," Bouchiat told reporters, adding that orders at Thales tended to be weighted towards the final quarter.
The second tranche of a recent Indonesian order for Dassault-made French Rafale fighters that involve 18 jets for which Thales makes the radar is expected to be reflected in the fourth quarter, he added.
Jefferies analysts said the third-quarter order intake was below expectations but that this appeared to be driven mainly by the timing of the Indonesian Rafale order in Thales' accounts.
In the Digital Identity & Security division, Thales said cybersecurity and biometrics saw strong growth offset by negative growth in payment and SIM cards in the third quarter, notably in Asia.
Bouchiat said a recent supply crisis in electronic chips appeared to be over as far as the Digital division was concerned, while supply gaps remained in Aerospace.
More broadly, the supply chain remains under significant pressure in several countries for hardware and mechanical components, affecting satellites and radars, he added.
Thales is paying close attention to the fate of small suppliers that were unable to invest adequately during the pandemic and are now struggling to keep up with demand. In some cases, Thales has had to pay advances or provide other support.
"We remain very vigilant," Bouchiat said, adding that he hoped the situation would stabilise progressively in 2024.
($1 = 0.9438 euros)
