· Order intake: €16.5 billion, down 13%
· Sales: €14.9 billion, up 6.8% on an organic basis1
· EBIT2: €1,354 million, up 11% (up 15% on an organic basis)
· Adjusted net income, Group share2: €897 million, up 11%
· Consolidated net income, Group share: €946 million, up 24%
· Free operating cash flow2: €954 million, 106% of adjusted net income
· Dividend3 up 18% to €1.60
· 2017 objectives: Mid-single digit organic sales growth
EBIT between €1,480 and €1,500 million
PARIS La Défense --- Thales’s Board of Directors met on 27 February 2017 to close the 2016 financial statements.
Patrice Caine, Chairman & Chief Executive Officer, stated: “2016 represents another successful milestone for our profitable growth strategy. The order intake remained at a high level, outperforming sales for the fourth year in a row. Sales grew by 6.8% organically, with all of our businesses contributing to this performance, and profitability continued to increase in line with our medium-term targets. At the same time, we have increased our investments in innovation, digital transformation and talent development.”
He added: “On behalf of the Board of Directors, I would like to thank all of our teams for their commitment in support of the Ambition 10 strategy. Their implication enables Thales to drive a deep transformation that will foster profitable and sustainable growth.”
Order intake in 2016 amounted to €16,514 million, down 13% on the record high of 2015 (down 11% at constant scope and currency). Commercial momentum was solid in all of the Group's businesses, with the decrease explained by an exceptional volume of large orders booked in 2015. At 31 December 2016, the Group's order book stood at €33,530 million, which represents almost 2.3 years of sales and improving the visibility for the businesses in the coming years.
Sales came in at €14,885 million, up 5.8% on a reported basis, and up 6.8% at constant scope and currency (“organic” change). Emerging market1 sales maintained a high level of growth (+14% organic growth, after +16% in 2015), while sales in mature markets1 regained momentum (up +4%, after +1% in 2015).
In 2016, consolidated EBIT was €1,354 million (9.1% of sales), versus €1,216 million (8.6% of sales) in 2015. EBIT benefited in particular from the first effects that began to filter through from the operational recovery of the Transport segment, as well as the continued solid performance of the Aerospace and Defence & Security segments.
The Group exceeded all the financial objectives it had set for 2016: an order intake of between €15.5 billion and €16.0 billion, organic sales growth slightly above 5%, and an EBIT of between €1,300 million and €1,330 million, based on February 2016 exchange rates.
Adjusted net income, Group share rose 11% to €897 million, in line with EBIT growth.
Consolidated net income, Group share was €946 million, up 24% year-on-year, benefiting from EBIT growth and from a sharp rise in disposals of assets.
Free operating cash flow came in at €954 million in 2016. This continued strong cash flow performance was boosted by the rise in adjusted net income and by advance payments received on orders during the year.
At 31 December 2016, net cash was €2,366 million, up almost €400 million compared to 31 December 2015.
Click here for the full statement (16 PDF pages) on the Thales website.