Thales Confirms 2021 Outlook, Says Australia Canceling Submarine Program Won't Hurt Earnings
September 16 2021 - 2:59AM
Dow Jones News
By Olivia Bugault
Thales SA said Thursday that Australia's decision to end its
Australian Future Submarine program shouldn't materially affect its
earnings, and backed its 2021 financial target.
Australia has decided acquire nuclear-powered submarines from
the U.S. and the U.K. via a new security partnership instead of
proceeding with the Australian Future Submarine program, it
said.
"From a financial point of view, Thales is exposed to this
program at two levels: as a supplier of subsystems to Lockheed
Martin, and as a 35% shareholder of [naval defense contractor]
Naval Group," the French aerospace-and-defense company said.
The order booked with Lockheed Martin Corp. as part of this
program represents less than 0.1% of Thales's total order book, the
company said.
Meanwhile, Thales doesn't expect the decision to materially
impact its earnings before interest and taxes this year due to its
stake in Naval Group, it said.
Thales confirmed its 2021 financial targets which include sales
between 15.8 billion and 16.3 billion euros ($18.67 billion-$19.26
billion).
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
September 16, 2021 03:44 ET (07:44 GMT)
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