Thales (THLEF.PK), a France-based provider of integrated solutions and equipment of security systems to the aerospace and defense market, said Friday that over the past few months DCNS, in which Thales holds a 35 percent shareholding, has conducted a comprehensive review of the financial and contractual status of several activities and complex programs, which have had difficulties.
On the basis of these, DCNS now expects that it should post a net loss of around 300 million euros for full year 2014, taking into account the booking of further charges and provisions.
The difficulties are mainly found in the energy diversification activities, essentially in civil nuclear activities, as well as on some naval programs.
DCNS's contribution to the Group's EBIT would be negative by around 100 million euros in 2014, against a contribution expected to be close to zero, and a positive contribution of 40 million euros in 2013.
Excluding this exceptional impact, Thales confirmed that its performance in 2014 should be in line with its stated objectives of both stable order intake and sales and a 5-7 percent growth in EBIT.
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