© Reuters. FILE PHOTO: The logo of the French defense and electronics group Thales can be seen at the company's headquarters in Merignac near Bordeaux, France, March 22, 2019. REUTERS / Regis Duvignau
PARIS (Reuters) – French company Thales has raised its full-year revenue target after first-half revenue rose 9.8% on a like-for-like basis, led by Commercial and Defense.
Europe's largest defense electronics company, whose systems range from radar to rail and biometric sensors to satellites, said the surge reflected a broad recovery from the worst of the pandemic, with the exception of civil aerospace.
Orders rose 37% to 8.244 billion euros ($ 9.70 billion), led by large satellite deals in Europe and Indonesia.
Chief Executive Patrice Caine said the surge in orders had given confidence while warning that the business climate "continues to be disrupted".
The total operating result of Thales more than doubled in the first half of the year from 348 million euros in the previous year to 768 million euros, while half-yearly sales reached 8.423 billion euros.
Thales now expects sales of 17.5 to 18.0 billion euros in 2021, compared to an earlier target of 17.1 to 17.9 billion.
The new sales outlook from Thales assumes that there are no major new economic or public disruptions and a return to normalcy in the global semiconductor supply chain, the company said.
In May it announced it hadn't seen a significant impact from a global shortage of chips used by its identity and bank payments businesses, but was adding new suppliers.
Caine declined to comment on speculation over the possible sale of the company's rail signaling business.
Reuters reported this month that Thales Japan's Hitachi (OTC 🙂 Rail, the Swiss Stadler rail (SIX 🙂 and Spain's CAF for the deal, which analysts have valued between 1.5 billion and 2.5 billion euros.
The French aerospace group, which is partially owned by the French state, is trying to streamline its operations after investors have frequently questioned the diversity of its portfolio.
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(Corrected this story to remove the reference to Canada in paragraph 3.
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